BIM90055 | Post-cessation receipts and expenses: receipts which are not post-cessation receipts: transfer of trading stock
From HM Revenue & Customs · Business Income Manual
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Payment for the transfer of trading stock is not usually a post-cessation receipt
When a business ceases to trade, it may still have trading stock which needs to be sold.
If the trading stock is valued in accordance with the tax legislation and included in the profit and loss account in the final period of account, any amount received for the transfer of the stock is not a post-cessation receipt. This is because the value of the trading stock has already been included in calculating the taxable profits of the trade to cessation.
The rules on valuation of stock on cessation are found in Chap 12 and Chap 11 . For guidance on the application of these provisions, see onwards.
For these purposes, trading stock takes the definition in and (see onwards).
Other receipts which are not post-cessation receipts
Other receipts which are specifically excluded from being post-cessation receipts are:
payments for transfer of work in progress (see )
lump sums paid to personal representatives for copyright etc (see )
These exclusions do not apply to companies subject to Corporation Tax.