Corporation Tax Act 2009 section 281

Extent of charge to tax

Section 281 restricts when post-cessation receipts from a UK property business can be taxed under the post-cessation receipts rules, ensuring that amounts are not taxed twice.

• Post-cessation receipts are only taxable under the post-cessation rules to the extent they are not already subject to corporation tax or income tax elsewhere.
• This prevents double taxation by ensuring a receipt cannot be charged under both the post-cessation rules and another tax provision at the same time.
• If a post-cessation receipt from a UK property business has already been included in calculating the profits of that business for any period, it falls outside the post-cessation charge.
• The rule acts as a safeguard, so the post-cessation receipts regime only catches amounts that would otherwise escape tax entirely.