Part 3Trading income
Chapter 6Trade profits: receipts
Other receipts
103Sums recovered under insurance policies etc
(1)
This section applies if—
(a)
a deduction has been made for a loss or expense in calculating the profits of a trade,
(b)
a company 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).