Taxation of recovered expenses and waived trading liabilities as business income under the successor in business rules. Amounts recovered in respect of a previously allowed loss or expenditure, and benefits arising from remission or cessation of a trading liability, are treated as business income where a deduction or allowance had earlier been granted for the same item. The provision applies only where the earlier allowance or deduction was actually granted in assessment in respect of a loss, expenditure, or trading liability of revenue character. The charge extends to the successor in business where the benefit accrues to, or the amount is received by, the successor.