BIM45585 - Specific deductions: insurance: war risks

ICTA88/S586 prohibits a deduction for payments made under any contract or arrangement whereby the payer obtains any right of indemnity in respect of war damage.

The following payments are excepted from this prohibition:

• that part of any payment of a mixed character which is properly attributable to purposes other than war risks indemnity - for example the purchase price of goods in cases where the contract of sale includes a condition for safe delivery.
• premiums paid for ordinary insurable risks in respect of war damage, namely under contracts of marine and aircraft insurance and contracts of insurance of goods in transit.