Income and Corporation Taxes Act 1988

104 Conventional basis: general charge on receipts after discontinuance F1 . . . . U.K.

(1) M1 Where any trade, profession or vocation [F2 carried on wholly or partly in the United Kingdom] the [F3 profits] of which are chargeable to tax F4 . . . has been permanently discontinued, and the [F3 profits] for any period before the discontinuance were computed on a conventional basis, [F5 corporation tax shall be charged under Case VI of Schedule D] in respect of any sums to which this subsection applies which are received on or after the discontinuance.

(2) Subject to subsection (3) below, subsection (1) above applies to all sums arising from the carrying on of the trade, profession or vocation during any period before the discontinuance, not being sums otherwise chargeable to tax, in so far as the amount or value of the sums was not brought into account in computing the [F3 profits] for any period before the discontinuance.

(3) In subsection (2) above the reference to sums otherwise chargeable to tax includes any sums which (disregarding this section) are chargeable to [F6 corporation tax] under section 103 or to which that section would have applied but for subsection (3)(a) F7 . . . of that section.

(4) F8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) F8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) M2 It is hereby declared that where work in progress at the discontinuance of a profession or vocation, or the responsibility for its completion, is transferred, the sums to which subsection (1) above applies include any sums received by way of consideration for the transfer, and any sums received by way of realisation by the transferee, on behalf of the transferor, of the work in progress transferred.

(7) F8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1 Words in s. 104 sidenote repealed (with effect in accordance with Sch. 27 Pt. 3(6) Note of the repealing act) by Finance Act 1998 (c. 36), Sch. 27 Pt. 3(6)

F2 Words in s. 104(1) inserted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 83(2)(a) (with Sch. 2)

F3 Words in s. 104(1)(2) substituted (31.7.1998) by Finance Act 1998 (c. 36), s. 46(3)(a)(b), Sch. 7 para. 1

F4 Words in s. 104(1) repealed (6.4.2005 with effect in accordance with s. 883(1) of the repealing Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 83(2)(b), Sch. 3 (with Sch. 2)

F5 Words in s. 104(1) substituted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 83(2)(c) (with Sch. 2)

F6 Words in s. 104(3) substituted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 83(3)(a) (with Sch. 2)

F7 Words in s. 104(3) repealed (6.4.2005 with effect in accordance with s. 883(1) of the repealing Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 83(3)(b), Sch. 3 (with Sch. 2)

F8 S. 104(4)(5)(7) repealed (with application in accordance with Sch. 27 Pt. 3(6) Note of the repealing Act) by Finance Act 1998 (c. 36), Sch. 27 Pt. 3(6)

Marginal Citations

M1 Source—1970 s.144(1)

M2 Source—1970 s.144(3), (4)