Section 103 Sums recovered under insurance policies etc

(1)

This section applies if—

(a)

a deduction has been made for a loss or expense in calculating the profits of a trade,

(b)

a company carrying on the trade recovers a sum under an insurance policy or a contract of indemnity in respect of the loss or expense, and

(c)

the sum is not of a revenue nature.

(2)

The sum is brought into account as a receipt in calculating the profits of the trade (but only up to the amount of the deduction).

Notes on Part 3

C1: Pt. 3 modified (1.1.2010) by Northern Rock plc (Tax Consequences) Regulations 2009 (S.I. 2009/3227), regs. 1, 4(1)