Are Greasypalm rebates 'taxable'?

Milarky · 1 March 2005 at 1:03AM

Heading says it all really. I know that this is described as 'cashback', but if you don't 'buy' anything directly from GP then they can't 'rebate' you in the sense that cashback works as a rebate on credit cards or 'offsetting' works with certain mortgages combined with savings balances.

I suspect the answer is 'no' and that all 'cashbacks' are just tax exempt rebates [not 'income'] but I was wondering if anybody out there knows anything specific?

Thanks

MJSW · 1 March 2005 at 2:54PM

You need Inland Revenue Statement of Practice SP 4/97. This gives the Revenue's views on the correct treatment of cashbacks and other incentives. See http://www.inlandrevenue.gov.uk/practitioners/sop.pdf (warning - this is quite a big file, around 3mb).

Generally, cashbacks will be tax free. There are some exceptions however, such as where you were buying the goods for use in a business.

"7. In general, ordinary retail customers purchasing goods, investments or services at arm's length will not be liable to income or capital gains tax in respect of any commission, discounts or cashbacks received by them. For example, an ordinary retail customer who, when purchasing a car, negotiates to receive part of the commission earned on the sale by the salesperson will not be liable to income or capital gains tax in respect of that commission."

Are Greasypalm rebates 'taxable'?

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free