Income Tax (Trading and Other Income) Act 2005 (c. 5)

Part 3 U.K. Property income

Chapter 10 U.K. Post-cessation receipts

Charge to tax on post-cessation receipts U.K.

349 Charge to tax on post-cessation receipts U.K.

Income tax is charged on post-cessation receipts arising from a UK property business.

350 Extent of charge to tax U.K.

(1) A post-cessation receipt is chargeable to tax under this Chapter only so far as the receipt is not otherwise chargeable to income or corporation tax.

(2) Accordingly, a post-cessation receipt arising from a UK property business is not chargeable to tax under this Chapter so far as it is brought into account in calculating the profits of the business for any period.

351 Income charged U.K.

(1) Tax is charged under this Chapter on the full amount of the receipts received in the tax year.

(2) This is subject to—

(a) sections 254 and 255 (allowable deductions), and

(b) section 257 (election to carry back),

which apply for the purposes of this Chapter as they apply for the purposes of Chapter 18 of Part 2 (but as if any reference to a trade were to a UK property business).

352 Person liable U.K.

The person liable for any tax charged under this Chapter is the person receiving or entitled to the receipts.