Corporation Tax Act 2009 section 285

Allowable deductions

Section 285 applies the trading income rules on allowable deductions against post-cessation receipts to UK property businesses that have ceased.

• When a UK property business ceases and post-cessation receipts arise, certain costs can be deducted against those receipts.
• The allowable deduction rules that apply to post-cessation receipts from trades (set out in sections 196 and 197) are imported and applied equally to UK property businesses.
• Wherever those trading income rules refer to a "trade", the reference should be read as meaning a "UK property business" instead.
• This ensures that former property business operators receive the same relief for qualifying expenses as former traders when taxable receipts come in after the business has ended.