Part 4Loss relief
Chapter 2Trade losses
Post-cessation trade relief
99Reduction of relief for unpaid trade expenses
1
This section applies for the purposes of post-cessation trade relief in respect of a person's trade if a deduction was made in calculating the profits of the trade for an expense not actually paid (an “unpaid expense”).
2
The amount of the person's relief for a tax year is reduced (but not below nil) by—
a
the total amount of unpaid expenses at the end of the tax year, or
b
if the person carried on the trade as a partner in a firm, the person's share of the total amount of unpaid expenses at the end of the tax year.
3
But any unpaid expense which is taken into account in reducing the amount of the person's relief for a tax year is left out of account in making reductions for subsequent tax years.
4
If the person actually pays an amount in respect of an unpaid expense taken into account in reducing the amount of the person's relief, the person is treated as making a qualifying payment for the purposes of section 96.
5
The amount of the qualifying payment is—
a
the amount actually paid, or
b
if less, the amount of the reduction.
6
This section applies to professions and vocations as it applies to trades.