Valid from 06/04/2005
Proceeds of insurance etc.U.K.
106Sums recovered under insurance policies etc.U.K.
(1)This section applies if—
(a)a deduction is allowed for a loss or expense in calculating the profits of a trade,
(b)a person carrying on the trade recovers a sum under an insurance policy or a contract of indemnity in respect of the loss or expense, and
(c)the sum is not of a revenue nature.
(2)The sum is brought into account as a receipt in calculating the profits of the trade (but only up to the amount of the deduction).