Commentary

B2.201 Trade receipts—introduction

Business tax
Business tax | Commentary

B2.201 Trade receipts—introduction

Business tax | Commentary

Division B2.2     Trade receipts

For updates affecting this Division please see Part B0 Updates

An introduction to trade receipts

B2.201 Trade receipts—introduction

The majority of the receipts received by traders are obviously trading items, eg the sale of trading stock or the provision of services. However, there may be instances where the correct treatment is less obvious, or where the receipt should be treated as a capital item rather than a revenue trading item.

ITTOIA 2005, Pt 2 Ch 6 (ss 95–106) sets out the treatment of specific receipts in calculating the profits of a trade. These rules (except for ITTOIA 2005,

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