Textual Amendments
F1Ss. 97A, 97B and cross-heading inserted (with effect in accordance with Sch. 4 paras. 56, 57 of the amending Act) by Finance Act 2013 (c. 29), Sch. 4 para. 21
(1)This section applies if—
(a)a person permanently ceases to carry on a trade in a tax year, and
(b)an election under section 25A (cash basis for small businesses) has effect in relation to the trade for the tax year.
(2)The value of any trading stock belonging to the trade at the time of the cessation is brought into account as a receipt in calculating the profits of the trade for the tax year.
(3)The value is to be determined on a basis that is just and reasonable in all the circumstances.
(4)If there is a change in the persons carrying on a trade, subsection (2) does not apply in relation to the trade so long as a person carrying on the trade immediately before the change continues to carry it on after the change.
(5)In this section “trading stock” has the same meaning as in Chapter 12 (see section 174).
(6)This section does not apply to professions or vocations.
(1)This section applies if—
(a)a person permanently ceases to carry on a profession or vocation in a tax year, and
(b)an election under section 25A (cash basis for small businesses) has effect in relation to the profession or vocation for the tax year.
(2)The value of any work in progress at the time of the cessation is brought into account as a receipt in calculating the profits of the profession or vocation for the tax year.
(3)The value is to be determined on a basis that is just and reasonable in all the circumstances.
(4)If there is a change in the persons carrying on a profession, subsection (2) does not apply in relation to the profession so long as a person carrying on the profession immediately before the change continues to carry it on after the change.
(5)In this section “work in progress” has the same meaning as in Chapter 12 (see section 183).]