Corporation Tax Act 2009 section 103

Sums recovered under insurance policies etc.

Section 103 deals with a transitional rule that prevents double-counting where sums recovered under insurance policies have already been accounted for in earlier periods.

• Section 103 normally requires that sums recovered under insurance policies or other indemnity arrangements are brought into account as trading receipts.
• This transitional provision disapplies section 103 where the recovered sum relates to an accounting period ending before 1 April 2009.
• The rule applies where a company carrying on a trade recovers such a sum and that sum has already been included in the calculation of trade profits for a pre-April 2009 period.
• The purpose is to avoid the same sum being taxed twice — once under the old rules and again under the Corporation Tax Act 2009.