BIM40200 - Receipts: unclaimed balances: contents
BIM40200 describes the treatment of issues that arise following the recognition in profit and loss accounts of sums that many traders consider to be in the nature of ‘windfalls’. Because the sums may be unexpected or unpredictable in nature, traders sometimes claim that they are not taxable, arguing that they do not arise from the trade. But an element of the unexpected or unpredictable in a receipt does not mean that it is not a trading receipt or not taxable. This is especially so where such sums are a common feature of the trade.
The guidance is arranged as follows:
| BIM40201 | Introduction and scope of the subject |
| BIM40205 | Accounting treatment |
| BIM40210 | It is vital to establish all of the facts |
| BIM40215 | Legal background: the basics |
| BIM40220 | Legal status of an agent |
| BIM40225 | Four broad categories of case |
| BIM40230 | Receipts that become taxable by operation of law |
| BIM40235 | Receipts that become taxable by operation of law: example |
| BIM40240 | Overpayments |
| BIM40245 | Overpayments: example |
| BIM40250 | The holding of funds that belong to someone else |
| BIM40255 | Trade debts that are never paid |
| BIM40260 | Trade debts not paid: example |
| BIM40265 | Trade debts written back to profit and loss account |
The following related issues are covered elsewhere:
- voluntary payments and whether they are trade receipts, BIM41810;
- the treatment of unclaimed balances in the accounts and computations of financial institutions, Banking Manual;
- the treatment of corporate debt under the loan relationship regime, Corporate Finance Manual.
