B2.211 Insurance proceedsIt is well established that the whole of the money received under an insurance policy in respect of stock destroyed is a trade receipt. The amount is not limited to the amount shown as the value of the stock in the accounts of the business.The leading case on this issue is Gliksten1. In that case a large quantity of the company's stock of timber was destroyed by fire, and the written-down value of the destroyed timber stood in the books at £160,824. The company received from the insurance company £477,838, representing the replacement value of the destroyed
It is well established that the whole of the money received under an insurance policy in respect of stock destroyed is a trade receipt. The amount is not limited to the amount shown as the value of the stock in the accounts of the business.
The leading case on this issue is Gliksten1. In that case a large quantity of the company's stock of timber was destroyed by fire, and the written-down value of the destroyed timber stood in the books at £160,824. The company received from the insurance company £477,838, representing the replacement value of the destroyed
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