Specific deductions: bad & doubtful debts: recovered after allowance
The following guidance does not apply to bad money debts of companies which are dealt with under the loan relationship rules. See BIM42701.
Where a deduction for a bad or doubtful debt has been made and the taxpayer subsequently recovers the debt or an amount in excess of its written-down value, the amount recovered or the excess should be brought into credit in the year of recovery (see Bristow v William Dickinson & Co Ltd  27TC157).
As regards the treatment of debts recovered after the discontinuance of a business, see BIM42745.