S5 Income Tax (Trading and Other Income) Act 2005, S35Corporation Tax Act 2009

Identify the reason for which the compensation/damages was paid

In some circumstances receipts for damages and compensation may be clearly referable to:

specific tangible fixed or circulating assets used in the trade (see BIM40115)

cancellation, breach or variation of a trading agreement (see BIM40120)

reimbursement of trading expenses (see BIM40130)

compensation for loss of office (see BIM40135)

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