Where an amount of compensation, not itself a trading receipt under BIM40110 - BIM40125, includes reimbursement of trading expenses that are admissible as a deduction, you should treat such expenses as diminished to the extent of the reimbursement (see the dictum of Lord Blackburn in CIR v The Granite City Steamship Co. Ltd [1927] 13TC1 at p.18). If such diminution is effected in the trader's accounts by crediting the reimbursement when received, you should normally not object to following that course for tax purposes.
