Corporation Tax Act 2009 section 190

Basic meaning of "post-cessation receipt"

Section 190 defines what a "post-cessation receipt" means for corporation tax purposes and explains when a trade is treated as having permanently ceased.

• A post-cessation receipt is any sum received after a person has permanently stopped carrying on a trade, where that sum arises from the trade carried on before it ceased.
• A non-UK resident company that becomes liable to corporation tax is treated as having ceased its income tax trade, and any subsequent receipts from that trade may be taxed as post-cessation receipts under corporation tax.
• Where a trade was carried on in partnership and a partner leaves the firm, any sum a company receives arising from that partner's trade may also be a post-cessation receipt.
• Specific rules on transfers of rights and trading stock (sections 194 and 195) are excluded from the extended meaning of permanent cessation.