Budget 2016: Taxation of trading income received in non-monetary form

HMRC consider that existing legislation already provides that trading and property income received in non-monetary form is fully taxable however this has been challenged in some instances.

The measure which will have effect in relation to business transactions occurring on or after 16 March 2016, will ensure that non-monetary receipts are brought into account at their full value when calculating taxable profits.

The measure is aimed at closing any opportunity to argue against chargeability and is likely to have minimal economic impact.