Creed v H & M Levinson Ltd Ch D 1981 54 TC 477  STC 486
A hat manufacturer made hats mainly for one customer, Marks & Spencer Plc (M&S). M&S decided to terminate there contract and offered an ex gratia payment of £5,000. The company declined the offer and took matters to court, which resulted in a receipt of £22,500. As the payment was the result of settlement, i.e. not voluntary and it related to a trading loss it was decided to be a trading receipt.