# Income Tax (Trading and Other Income) Act 2005, Section 106: Sums recovered under insurance policies etc.


(1) This section applies if—
(a) a deduction is allowed for a loss or expense in calculating the profits of a trade,
(b) a person 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).

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Source: https://www.legislation.gov.uk/ukpga/2005/5/section/106 (the official version)
Page: https://openlegislation.uk/income-tax-trading-and-other-income-act-2005/section-106
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.