Miscellaneous income: calculating the profits
S687-S689 Income Tax (Trading and Other Income) Act 2005, S979-S981 Corporation Tax Act 2009
For Income Tax, the sweep-up charge is on income arising in the tax year. For Corporation Tax, the sweep-up charge is on income arising in an accounting period.
Guidance on allowable deductions is at BIM100155.
Non Cash Receipts
As with trading income, the miscellaneous income sweep-up provisions charge money or money’s worth.
A non-transferable holiday offered as an alternative to a sum of money as payment for a ‘story’ by a newspaper is taxable as miscellaneous income. The sum for assessment being the amount of the cash alternative.
A non-transferable holiday provided, with no cash alternative, as payment for a ‘story’ by a newspaper is not taxable as miscellaneous income as it cannot be converted into money.