BIM40800 - Receipts: interest and dividends: contents

This chapter deals with the treatment of the interest and dividend income of a person carrying on a trade, profession or vocation and explains the circumstances in which that income:

• may be taxed as a receipt of the trade etc under Case I or II of Schedule D (referred to as a ‘trade receipt' in these paragraphs), or
• although taxed under another head of charge may be regarded as a trade receipt solely for the purpose of giving relief for trading losses.

The chapter contains the following:

Other related topics are dealt with as follows:

• Dividends from co-operative societies BIM24560.
• Bank interest etc received by a solicitor in the exercise of his profession BIM65800 onwards.
• Sale or transfer of interest rights IM4580+.
• Transactions in deposits or loans IM4590+.
• Case I treatment for companies’ creditor loan relationships CTM51820.

There are also special rules for interest and dividends, which form part of Lloyd's underwriting income, see the Lloyds Manual.