Commentary

B2.445 Insurance and indemnity

Business tax
Business tax | Commentary

B2.445 Insurance and indemnity

Business tax | Commentary

B2.445 Insurance and indemnity

HMRC's internal guidance concerning insurance is contained in BIM45500 onwards.

The statutory prohibition on deductions for sums recoverable under a contract of insurance or indemnity1 follows ordinary commercial principles. The cost of maintaining an insurance policy in respect of loss or damage to the trade and its assets is an ordinary expense of the trade and is deductible as such.

Annual premiums on policies providing indemnity for damage to or loss of fixed assets (including intangible assets) are allowed as a deduction, provided they are incurred wholly and exclusively for the purposes of the trade. A deduction

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