Income Tax Act 2007 section 96

Post-cessation trade relief

Section 96 provides income tax relief for certain payments made, or losses on debts arising, after a person has permanently ceased carrying on a trade, profession or vocation.

• After permanently ceasing a trade, a person may claim relief for qualifying payments made or qualifying events relating to trade debts, provided these occur within seven years of cessation
• The relief operates as a deduction in calculating the person's net income for the tax year in which the payment is made or the qualifying event occurs
• Claims must be submitted on or before the first anniversary of the normal self-assessment filing date for the relevant tax year
• Relief may be denied or reduced where payments or events are tax-generated, trade expenses remain unpaid, or relief has already been given elsewhere