Section 106 | Sums recovered under insurance policies etc.

(1)This section applies if—

(a)a deduction is allowed for a loss or expense in calculating the profits of a trade,

(b)a person carrying on the trade recovers a sum under an insurance policy or a contract of indemnity in respect of the loss or expense, and

(c)the sum is not of a revenue nature.

(2)The sum is brought into account as a receipt in calculating the profits of the trade (but only up to the amount of the deduction).