Commentary on Sections Overview Overview Section 93: Capital receipts
362.This section is the mirror image of section 53 (capital expenditure). It is new. The corresponding rule for income tax is in section 96 of ITTOIA.
363.Subsection (1) sets out the general rule that items of a capital nature are not to be treated as receipts of a trade.
364.It is a long-established principle that capital receipts are ignored in calculating tax on income.
365.Subsection (2) disapplies the general rule in subsection (1) where there is statutory provision for a capital sum to be taken into account as a receipt in calculating the profits of a trade. See, for example, section 103 (sums recovered under insurance policies etc) and the rules in Part 5 (loan relationships), Part 7 (derivative contracts) and Part 8 (intangible fixed assets).