[F197BCash basis: value of work in progress on cessation of profession or vocationU.K.
(1)This section applies if—
(a)a person permanently ceases to carry on a profession or vocation in a tax year, and
(b)[F2the cash basis applies] in relation to the profession or vocation for the tax year.
(2)The value of any work in progress at the time of the cessation is brought into account as a receipt in calculating the profits of the profession or vocation for the tax year.
(3)The value is to be determined on a basis that is just and reasonable in all the circumstances.
(4)If there is a change in the persons carrying on a profession, subsection (2) does not apply in relation to the profession so long as a person carrying on the profession immediately before the change continues to carry it on after the change.
(5)In this section “work in progress” has the same meaning as in Chapter 12 (see section 183).]
Textual Amendments
F1Ss. 97A, 97B and cross-heading inserted (with effect in accordance with Sch. 4 paras. 56, 57 of the amending Act) by Finance Act 2013 (c. 29), Sch. 4 para. 21
F2Words in s. 97B(1)(b) substituted (6.4.2024 for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 10 paras. 24, 47 (with Sch. 10 paras. 48-50)