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Windfall profit

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Updated: Aug 20, 2021

A profit not anticipated. It might arise perhaps from changes in legislation. An increase in tax or duty might result in the manufacturer’s making additional profit on stock whereon the lower rate of duty has already been paid. Windfall profits, being exceptional, should be shown separately in company accounts.

Reference: The Penguin Business Dictionary, 3rd edt.


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James is a lead content editor for Invezz. He's an avid trader and golfer, who spends an inordinate amount of time watching Leicester City and the… read more.