Income Tax (Trading and Other Income) Act 2005 section 244

Income charged

Section 244 sets out how the amount of post-cessation receipts charged to income tax is determined.

• Tax is charged on the full amount of post-cessation receipts received in the tax year
• The charge is based on receipts actually received, not amounts accrued or due
• The full amount may be reduced by allowable deductions permitted under sections 254 and 255
• A taxpayer may elect under section 257 to carry back post-cessation receipts, which may also reduce the amount charged in the current year