C1Part 3Trading income

Annotations:
Modifications etc. (not altering text)

Chapter 15Post-cessation receipts

Sums treated as post-cessation receipts

193Debts released after cessation

1

This section applies if—

a

in calculating the profits of a trade of any period for corporation or income tax purposes, a deduction is allowed for the expense giving rise to a debt owed by the person who carried on the trade,

b

the person has permanently ceased to carry on the trade at or after the end of that period,

c

after the cessation, all or part of the debt is released, and

d

the release is not part of a statutory insolvency arrangement.

2

The amount released is treated as a post-cessation receipt.