Corporation Tax Act 2009 section 191

Other rules about what counts as post-cessation receipts

Section 191 identifies which other provisions of the Act treat certain amounts as post-cessation receipts, and which provisions exclude certain amounts from being post-cessation receipts.

• Seven provisions elsewhere in the Act deem specific amounts to be post-cessation receipts, including items such as contributions to local enterprise organisations, distributions from mutual concerns, benefits received by charity donors, debts paid or released after cessation, transfers of rights to non-traders, and unremittable income where relief is withdrawn after the source ceases.
• Where debts are released after cessation, the treatment may be modified by the car hire rules, which can restrict the amount brought into charge.
• Two provisions operate in the opposite direction: they exclude certain amounts from being post-cessation receipts — specifically where a trade is acquired and receipts arise from the transferor's former trade, or where rights are transferred to someone who carries on a trade.
• The equivalent rule for income tax purposes is found in section 247 of the Income Tax (Trading and Other Income) Act 2005.