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HMRC internal manual

Business Income Manual

HM Revenue & Customs
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Specific deductions: losses: contents

Taxpayers may suffer losses from a variety of causes, including:

  • theft (by customers and/or staff)
  • damage by fire, flood or other agency
  • bank failure

If such a loss arises in the normal course of trading, it is an allowable deduction. Insurance (or other) recoveries in respect of such losses are taxable.

This chapter covers: