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Home / Simons-Taxes /Business tax /Part B2 How are trade profits and losses calculated? /Division B2.2 Trade receipts /Introduction to trade receipts / B2.201 Trade receipts—overview
Commentary

B2.201 Trade receipts—overview

Business tax

For updates affecting this Division please see Part B0 Updates

Introduction to trade receipts

B2.201 Trade receipts—overview

The majority of the receipts received by traders are obviously trading items, eg the sale of trading stock or the provision of services. However, there may be instances where the correct treatment is less obvious, or where the receipt should be treated as a capital item rather than a revenue trading item.

ITTOIA 2005, ss 95–106 (Pt 2 Ch 6) sets out the treatment of specific receipts in calculating the profits of a trade. These rules (except for ITTOIA 2005, s 105 concerning industrial development grants, see B2.210), apply to professions and vocations as well as trades1.

Similar rules apply for corporation tax purposes, as set out in CTA 2009, ss 93–104 (Pt

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