Corporation Tax Act 2009 section 196

Allowable deductions

Section 196 sets out which losses, expenses and debits may be deducted from amounts that would otherwise be taxable as post-cessation receipts.

• Deductions from post-cessation receipts are permitted under this section and section 197
• Losses, expenses or debits that would have been deductible had the trade continued may be deducted from post-cessation receipts
• No deduction is available where the loss, expense or debit arises directly or indirectly from the cessation of the trade itself
• No deduction is permitted if relief for the same amount has already been given under any other provision of the Tax Acts