beta This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

Business Income Manual

Specific deductions: compensation & damages: contents

Compensation may arise in a variety of circumstances. This chapter describes the tax treatment of payments and receipts for trading income purposes and covers the following:

For other guidance, see:

  • BIM62025 - compensation paid for damages caused by mining operations
  • BIM40100 onwards and EIM12852 - treatment of compensation or damages in the hands of the recipient
  • BIM51425 - compensation payments by brewers to tenants of tied houses