The fact that the recipient of interest or dividends carries on a trade, profession or vocation does not in itself displace the general rule that the income should be brought to account for tax under its normal head of charge.

There are (limited) circumstances, as mentioned in BIM40801, in which interest and dividend income may be regarded as a trade receipt. See BIM40810 for the treatment for the purposes of loss relief of income, which would be a trading receipt if it were not subject to tax under other provisions.

The interest or dividend will not qualify as a trade receipt unless it has satisfied at least one of the three tests described below.

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