(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 the occurrence of an event which under section 337(1) of ICTA is treated as the discontinuance 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.
(1)The following provisions treat certain amounts as post-cessation receipts for the purposes of this Part—
section 82(6) (contributions to local enterprise organisations or urban regeneration companies),
section 104(3) (distribution of assets of mutual concerns),
section 109(2) (receipt by donor or connected person of benefit attributable to certain gifts),
section 185(1) (election for valuation at cost),
section 248 (debts paid after cessation),
section 249 (debts released after cessation), as qualified, where appropriate, by section 48(4) (car or motor cycle hire),
section 250 (receipts relating to post-cessation expenditure),
section 251 (transfer of rights if transferee does not carry on trade), and
section 844 (income charged on withdrawal of relief after source ceases: unremittable income).
(2)Section 98 (acquisition of trade: receipts from transferor's trade) and section 251 (transfer of rights if transferee does not carry on trade) treat certain amounts as not being post-cessation receipts for the purposes of this Part.