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HMRC internal manual

Business Income Manual

Specific receipts: insurance and other commission: introduction

Statement of Practice SP4/97 paragraphs 11 to 16 set out the circumstances in which commission, cashbacks, discounts and similar inducements should be taken into account as receipts in computing taxable profits from a trade or profession. These paragraphs are reproduced at BIM40655.

For further guidance on:

  • sums to which the trader becomes entitled, see BIM40660,
  • own commission, see BIM40665,
  • deductions for commission passed on to customers, see BIM40670.

SP4/97 also covers the taxation of commission as miscellaneous income, see BIM100115.

SP4/97 was drawn up in consultation with representative bodies of the accountancy and legal professions and the insurance industry.