BIM40200 - Specific receipts: unclaimed balances: contents

This part of the guidance 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’.

As 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. However, 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 following related issues are covered elsewhere:

• voluntary payments and whether they are trade receipts (see BIM41810)
• the treatment of unclaimed balances in the accounts and computations of financial institutions (see CFM71030)
• the treatment of corporate debt under the loan relationship regime (see CFM30000)

The guidance is arranged as follows:

1. BIM40201

   Introduction and scope of the subject
2. BIM40205

   Accounting treatment
3. BIM40210

   Vital to establish all of the facts
4. BIM40215

   Legal background: the basics
5. BIM40220

   Legal status of an agent
6. BIM40225

   Four broad categories of case
7. BIM40230

   Receipts that become taxable by operation of law
8. BIM40235

   Receipts that become taxable by operation of law: example
9. BIM40240

   Overpayments
10. BIM40245

    Overpayments: example
11. BIM40250

    Holding of funds that belong to someone else
12. BIM40255

    Trade debts that are never paid
13. BIM40260

    Trade debts not paid: example
14. BIM40265

    Trade debts written back to profit and loss account