Section 97B | Cash basis: value of work in progress on cessation of profession or vocation

(1)This section applies if—

(a)a person permanently ceases to carry on a profession or vocation in a tax year, and

(b)the cash basis applies in relation to the profession or vocation for the tax year.

(2)The value of any work in progress at the time of the cessation is brought into account as a receipt in calculating the profits of the profession or vocation for the tax year.

(3)The value is to be determined on a basis that is just and reasonable in all the circumstances.

(4)If there is a change in the persons carrying on a profession, subsection (2) does not apply in relation to the profession so long as a person carrying on the profession immediately before the change continues to carry it on after the change.

(5)In this section “work in progress” has the same meaning as in Chapter 12 (see section 183).