BIM40050 | Receipts: general: contents

Most amounts received by traders are from the disposal of trading stock, provision of services, etc and are obviously trade receipts. Sometimes, however, it may not be clear whether a receipt is a trade receipt. This chapter of the guidance looks at how to determine whether a receipt arises from the trade at all and, if so, whether it is excluded as a capital item. The final part of the chapter deals with when a trade receipt is to be included in taxable profits.

For the rules regarding receipts for businesses using the cash basis, see BIM70015 onwards.

The chapter is arranged as follows: