Part 2Trading income
C1Chapter 18Post-cessation receipts
Annotations:
Modifications etc. (not altering text)
Sums treated as post-cessation receipts
248Debts paid after cessation
1
Subsection (2) applies if, in calculating the profits of a trade for income or corporation tax purposes, a deduction is made in respect of a debt under—
a
section 35 (bad and doubtful debts), or
b
section 74(1)(j) of ICTA (corresponding corporation tax provision),
and a person permanently ceases to carry on the trade.
2
A sum received after the cessation is treated as a post-cessation receipt so far as the deduction is made.
3
4
A sum received by the person in payment of the debt is treated as a post-cessation receipt so far as relief is given in respect of the sum.
Pt. 2 Ch. 18 applied (with modifications) (22.7.2020) by Finance Act 2020 (c. 14), Sch. 16 para. 2(3)(a)