Part 3Trading income

Chapter 15Post-cessation receipts

Charge to tax on post-cessation receipts

189Extent of charge to tax

(1)

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

(2)

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

(3)

A post-cessation receipt is not chargeable to tax under this Chapter if—

(a)

it is received by or on behalf of a non-UK resident company which is beneficially entitled to it, and

(b)

it represents income arising outside the United Kingdom.

(4)

A post-cessation receipt is not chargeable to tax under this Chapter if it arises from a trade carried on wholly outside the United Kingdom.