CA41420 - ABA: How allowances and charges are made

CAA01/S391 - S392

Where a person carries on a trade, treat allowances as expenses of that trade and charges as trade receipts.

If the person is not carrying on a trade but is carrying on a UK property business or a Schedule A business treat allowances as expenses of the business and charges as receipts.

If there is no trade or Schedule A business assume that the person is carrying on a Schedule A business and treat allowances as expenses and charges as receipts of that assumed business.