Overview
1411.This Chapter applies the rules about post-cessation receipts to property businesses, broadly as they apply to trades. The main rules for trades are in Chapter 18 of Part 2 of this Act. The application of the rules to property businesses is based on section 21B of ICTA, which specifically mentions sections 103 to 106 of ICTA.
1412.Section 65A(5) of ICTA provides that “the income from an overseas property business shall be computed … in accordance with the rules applicable to the computation of the profits of a Schedule A business”.
1413.Although the post-cessation receipt rules apply to a Schedule A business, they do so by virtue of section 21B of ICTA. That section deals with “other rules applicable to Case I of Schedule D”. On the other hand, section 21A of ICTA deals with rules about the computation of profits of a trade. So section 65A of ICTA imports only the computation rules in section 21A and the post-cessation receipt rules do not apply to an overseas property business.
1414.The following trading income rules (in Chapter 18 of Part 2 if this Act) cannot apply to a property business. So there is no corresponding rule in this Chapter:
Section 241: Professions and vocations;
Section 252: Transfer of trading stock or work in progress; (A property business cannot have trading stock or work in progress.)
Section 253: Lump sums paid to personal representatives for copyright etc; (Such sums cannot arise from a property business.) and
Section 256: Treatment of post-cessation receipts. (Property income cannot be relevant UK earnings or earned income.)
1415.The following trading income rules apply to property businesses but are not in separate sections in this Chapter:
Sections 248, 249 and 250: Rules about debts and post-cessation expenditure; (These rules are applied by section 354(2).)
Sections 254 and 255: Allowable deductions; (These rules are applied by section 351(2)(a).) and
Section 257: Election to carry back. (This rule is applied by section 351(2)(b).)
