BIM45500 - Specific deductions: insurance: contents

Whether insurance premiums are deductible from trading profits depends on what is insured and whether the insurance has been taken out for the purposes of the trade.

In most situations, if the insurance premiums are allowable deductions from trading profits, the receipts from the policy are taxable as trading income. Where no deduction is allowed, often the receipts are not taxable as revenue.

The cost of fee protection insurance is not allowable when the risks covered include the cost of negotiating additional tax liabilities resulting from careless or deliberate inaccuracies, see BIM46452.

Guidance on the tax treatment of insurance receipts is at BIM40750 onwards.

This chapter contains the following:

1. BIM45501

   Fixed assets
2. BIM45505

   Trading stock and debts
3. BIM45510

   Loss of profits
4. BIM45515

   Professional negligence
5. BIM45520

   Employee indemnity
6. BIM45525

   Employees and other key persons
7. BIM45530

   Key persons: non-trade purposes
8. BIM45560

   Own health policies and own insurance funds
9. BIM45565

   Locum and fixed overheads
10. BIM45575

    Customers
11. BIM45580

    Export Credit Guarantee scheme
12. BIM45590

    Premiums paid to mutual concerns
13. BIM45595

    Premium tax