BIM40201 - Specific receipts: unclaimed balances: introduction and scope of subject
Overview
The term 바카라 사이트˜unclaimed balances바카라 사이트™ includes sums derived from a trader바카라 사이트™s customers described as 바카라 사이트˜unclaimed balances바카라 사이트™, 바카라 사이트˜overpayments바카라 사이트™, 바카라 사이트˜windfalls바카라 사이트™, 바카라 사이트˜voluntary payments바카라 사이트™, 바카라 사이트˜double payments바카라 사이트™, 바카라 사이트˜payments by mistake바카라 사이트™, 바카라 사이트˜sums written back바카라 사이트™, etc. Such sums also arise if a supplier fails to ask a trader for money properly due, or asks for less than is properly due or refunds money in error.
The correct tax treatment depends on the nature and extent of the trade and the circumstances of receipt or payment. Broadly speaking, unclaimed balances, which are not on capital account, are part of the trading or property income for the year in which they are recognised as such in business accounts. These unclaimed balances are taxable in the year in which they are recognised.
A provision for a future liability that satisfies the criteria in BIM46510 is an allowable deduction for tax purposes. To the extent that the provision is not required it will be written back to profit and loss and is taxable when written back. The write back of the whole or part of a provision that is no longer required is not an example of 바카라 사이트˜unclaimed balances바카라 사이트™.
Health warning
This page is part of the section of the Business Income Manual on unclaimed balances. You should read the whole section to understand this topic. See the contents page at BIM40200.