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A voluntary payment is one where the payer is not obliged to make the payment. Whether these amounts are treated as trading receipts of the recipient depends on the circumstances of the payments¹.

HMRC summarises the likely tax treatment which has come out of various tax cases in BIM41810 as follows:

1. Ìý

   •ÌýÌýÌýÌý voluntary payments are not taxable unless they can be attached to a pre-existing source (Benyon v Thorpe²)

2. Ìý

   •ÌýÌýÌýÌý a payment can still be a trading receipt even if a trading relationship does not exist between the payer and the recipient (CIR v Falkirk Ice Rink Ltd³)

3. Ìý

   •ÌýÌýÌýÌý the nature of the payment in the recipient's hands determines whether it is a trading receipt but the intention of the payer can provide an indication of the nature of the receipt (Chibbett v Joseph Robinson & Sons⁴; Murray v Goodhews⁵; Rolfe v Nagel⁶)

4. Ìý

   •ÌýÌýÌýÌý a receipt which is used in the