Part 2Trading income

C1Chapter 18Post-cessation receipts

Annotations:
Modifications etc. (not altering text)
C1

Pt. 2 Ch. 18 applied (with modifications) (22.7.2020) by Finance Act 2020 (c. 14), Sch. 16 para. 2(3)(a)

Sums that are not post-cessation receipts

252Transfer 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.