BIM40051 - Receipts: Whether trading income

Most receipts in the hands of a person carrying on a trade, etc, arise from the disposal of trading stock, provision of services, etc. Such receipts are obviously trading income and any contentious issues are confined to the questions of timing considered at BIM31090 onwards. But from time to time sums may be received other than as consideration for the provision of goods and services where it may not be clear whether they are revenue trade receipts. In such cases two questions must be considered:-

• first, does the sum at issue arise from the trade at all?
• second, if it does, is it a capital or revenue item?

For further guidance on these points see:-

• BIM40055 on whether a receipt is from the trade.
• BIM40060 on the capital/revenue issue.
• BIM40065 if a receipt is not from the trade.