EIM64610 - Tax treatment of insurance agents: Trading Income cases

Statement of Practice SP4/97 (see EIM64605) also covers cases where liability arises under the Trading Income rules. The Trading Income part of the Statement is reproduced in the Inspectors’ Manual at BIM40655. Broadly, when commission is received on a regular basis or from a genuinely casual arrangement it may betreated as Trading Income. See BIM40650 onwards. An unexpected, wholly gratuitous, non-business receipt will not be chargeable to tax as Trading Income.