Income Tax (Trading and Other Income) Act 2005

Sums that are not post-cessation receipts

252 Transfer of trading stock or work in progress

(1) When a person permanently ceases to carry on a trade, a sum realised by—

(a) the transfer of trading stock, or

(b) the transfer of work in progress,

is not a post-cessation receipt if a valuation of the stock or work is brought into account in accordance with Chapter 12 (valuation of stock and work in progress).

(2) This does not prevent a sum from being treated as a post-cessation receipt as a result of an election under section 185 (election for valuation of work in progress at cost).

(3) In this section—

(a) “trading stock” has the meaning given by section 174, and

(b) “work in progress” and “transfer of work in progress” have the meaning given by section 183.

253 Lump sums paid to personal representatives for copyright etc.

(1) A lump sum which is paid to the personal representatives of the author of a literary, dramatic, musical or artistic work as consideration for the assignment by them of—

(a) the copyright in the work, or

(b) the public lending right in the work,

is not a post-cessation receipt.

(2) A lump sum which is paid to the personal representatives of the designer of a design in which design right subsists as consideration for the assignment by them of that right is not a post-cessation receipt.

(3) For the purposes of this section it does not matter whether the whole or a part of the right is assigned.