246Basic meaning of “post-cessation receipt”U.K.
(1)In this Part “post-cessation receipt” means a sum—
(a)which is received after a person permanently ceases to carry on a trade, and
(b)which arises from the carrying on of the trade before the cessation.
(2)For this purpose the reference to a person permanently ceasing to carry on a trade includes [F1a reference to a company ceasing to be within the charge to corporation tax in respect of a trade.]
(3)Subsection (4) applies if—
(a)a firm carries on a trade,
(b)a person ceases to be a partner in the firm, and
(c)the departure results in the partner permanently ceasing to carry on the notional trade (see section 852).
(4)The partner is treated for the purposes of this Chapter as permanently ceasing to carry on the trade.
Textual Amendments
F1Words in s. 246(2) substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 612 (with Sch. 2 Pts. 1, 2)