Section 353 | Basic meaning of “post-cessation receipt”

(1)In this Chapter “post-cessation receipt” means a sum—

(a)which is received after a person permanently ceases to carry on a UK property business, and

(b)which arises from the carrying on of the business before the cessation.

(1A)If the time immediately before a person permanently ceases to carry on a UK property business falls in a cash basis tax year (see section 351(4)), a sum is to be treated as a post-cessation receipt only if it would have been brought into account in calculating the profits of the business on the cash basis had it been received at that time.^F1

(2)Subsection (3) applies if—

(a)a firm carries on a UK property business,

(b)a person ceases to be a partner in the firm, and

(c)at least one of the persons with whom the partner carried on the business before ceasing to be a partner continues to carry it on afterwards.

(3)The partner is treated for the purposes of this Chapter as permanently ceasing to carry on the business.