Section 192 | Debts paid after cessation

(1)This section applies if, in calculating the profits of a trade for corporation or income tax purposes, a deduction is made in respect of a debt under—

(a)section 55 (bad debts), or

(b)section 35 of ITTOIA 2005 (bad and doubtful debts),

and a person permanently ceases to carry on the trade.

(2)A sum received after the cessation is treated as a post-cessation receipt so far as the deduction is made.