Where a deduction for a bad or doubtful debt has been made and
the taxpayer subsequently recovers the debt or an amount in excess
of its written-down value, the amount recovered or the excess
should be brought into credit in the year of recovery (see Bristow
v William Dickinson & Co Ltd [1946] 27TC157).
As regards the treatment of debts recovered after the
discontinuance of a business, see
BIM42745.
