Part 3 U.K. Trading income

Chapter 15 U.K. Post-cessation receipts

Sums treated as post-cessation receipts U.K.

192 Debts paid after cessation U.K.

(1) This section applies if, in calculating the profits of a trade for corporation or income tax purposes, a deduction is made in respect of a debt under—

(a) section 55 (bad debts), or

(b) section 35 of ITTOIA 2005 (bad and doubtful debts),

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.