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Legislation
Corporation Tax Act 2009

Crossheading Sums treated as post-cessation receipts

  • Section 192 Debts paid after cessation
  • Section 193 Debts released after cessation
  • Section 194 Transfer of rights if transferee does not carry on trade
  1. Sums treated as post-cessation receipts
  2. Debts released after cessation

Section 193 | Debts released after cessation

From legislation.gov.uk

(1)This section applies if—

(a)in calculating the profits of a trade of any period for corporation or income tax purposes, a deduction is allowed for the expense giving rise to a debt owed by the person who carried on the trade,

(b)the person has permanently ceased to carry on the trade at or after the end of that period,

(c)after the cessation, all or part of the debt is released, and

(d)the release is not part of a statutory insolvency arrangement.

(2)The amount released is treated as a post-cessation receipt.

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