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BIM90000 | Post-cessation receipts and expenses: contents

From HM Revenue & Customs · Business Income Manual

Chapter 18 Part 2 Income Tax (Trading and Other Income) Act 2005, Chapter 15 Part 3 Corporation Tax Act 2009

This guidance looks at the taxation of post-cessation receipts and expenses of a trade. These provisions apply to professions and vocations as they apply to trades. Post-cessation receipts and expenses legislation also applies to property businesses under Chapter 10 Part 3 ITTOIA 2005 (sections 349-356) and Chapter 9 Part 4 CTA 2009 (sections 280-286). See PIM2510.

Taxation of post-cessation receipts

It is important to note that there is no requirement in the legislation that the person who receives the post cessation receipt is the one who carried on the trade in question; the tax liability is on the person who receives the income.

This guidance looks at the tax treatment that should be applied where the source (that is the person earning the income or the trade or business) has, for whatever reason ceased.

Relief for post-cessation expenses

Relief may be available for post-cessation expenses of a trade, although such expenses still have to satisfy the wholly and exclusively test and be revenue in nature in order to qualify for relief. There are a number of different ways in which post-cessation expenses can be relieved, which depend on the person incurring the expenditure and the type of expenditure incurred.

This chapter contains the following:

Contents27 entries

  1. BIM90005Post-cessation receipts and expenses: has the trade ceased?
  2. BIM90010Post-cessation receipts and expenses: charge to tax
  3. BIM90015Post-cessation receipts and expenses: territorial scope of the provisions
  4. BIM90020Post-cessation receipts and expenses: person liable to tax
  5. BIM90025Post-cessation receipts and expenses: amount arising is relevant UK earnings
  6. BIM90030Post-cessation receipts and expenses: meaning of post-cessation receipts
  7. BIM90035Post-cessation receipts and expenses: meaning of post-cessation receipts: debts paid after cessation
  8. BIM90040Post-cessation receipts and expenses: meaning of post-cessation receipts: debts released after cessation
  9. BIM90045Post-cessation receipts and expenses: meaning of post-cessation receipts: receipts relating to post-cessation expenses
  10. BIM90050Post-cessation receipts and expenses: meaning of post-cessation receipts: transfer of rights if transferee does not carry on the trade
  11. BIM90055Post-cessation receipts and expenses: receipts which are not post-cessation receipts: transfer of trading stock
  12. BIM90060Post-cessation receipts and expenses: receipts which are not post-cessation receipts: transfer of work in progress
  13. BIM90065Post-cessation receipts and expenses: receipts which are not post-cessation receipts: lump sums paid to personal representatives for copyright
  14. BIM90070Post-cessation receipts and expenses: receipts which are not post-cessation receipts: Transfer of rights if the transferee carries on the trade
  15. BIM90075Post-cessation receipts and expenses: Election to carry back post-cessation receipts
  16. BIM90080Post-cessation receipts and expenses: meaning of post-cessation expenses
  17. BIM90085Post-cessation receipts and expenses: other provisions relieving expenses incurred after the cessation of the trade
  18. BIM90090Post-cessation receipts and expenses: overview of reliefs for post-cessation expenses
  19. BIM90095Post-cessation receipts and expenses: relief for post-cessation expenses against post-cessation receipts
  20. BIM90100Post-cessation receipts and expenses: post-cessation trade relief
  21. BIM90105Post-cessation receipts and expenses: post-cessation trade relief: reduction for unpaid trade expenses
  22. BIM90110Post-cessation receipts and expenses: post-cessation trade relief: meaning of qualifying payment
  23. BIM90115Post-cessation receipts and expenses: post-cessation trade relief: meaning of qualifying event
  24. BIM90120Post-cessation receipts and expenses: post-cessation trade relief: targeted anti-avoidance provision
  25. BIM90125Post-cessation receipts and expenses: post-cessation trade relief: interaction with relief for liabilities of a former employment
  26. BIM90130Post-cessation receipts and expenses: post-cessation expenses set against chargeable gains
  27. BIM90135Post-cessation receipts and expenses: carry forward of unrelieved post-cessation expenses