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.