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HMRC internal manual

Business Income Manual

Specific receipts: interest and dividends: contents

This chapter deals with the treatment of the interest and dividend income of a person carrying on a trade, profession or vocation and explains the circumstances in which that income:

  • may be taxed as a receipt of the trade, or
  • although taxed under another head of charge may be regarded as profits of the trade solely for the purpose of giving relief for trading losses.

Other related topics are dealt with as follows:

  • Dividends from co-operative societies - BIM24560.
  • Bank interest etc received by a solicitor in the exercise of his profession - BIM65800 onwards.
  • Trade treatment for companies’ creditor loan relationships - CFM32020.

There are also special rules for interest and dividends, which form part of Lloyd’s underwriting income, see the Lloyds Manual.

The chapter contains the following: