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HMRC internal manual

Business Income Manual

From
HM Revenue & Customs
Updated
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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.

Example

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.