Income Tax (Trading and Other Income) Act 2005 section 247

Other rules about what counts as post-cessation receipts

Section 247 acts as a signpost to other provisions in the Act that either treat certain amounts as post-cessation receipts or exclude certain amounts from being post-cessation receipts.

• Nine separate provisions elsewhere in the Act treat specific types of income as post-cessation receipts, including debts paid or released after cessation, distributions from mutual concerns, benefits received by donors of business gifts, and amounts arising from stock valuation elections
• Other categories include contributions returned from local enterprise organisations or urban regeneration companies, receipts relating to post-cessation expenditure, amounts from transfers of rights where the transferee does not carry on a trade, and withdrawals of relief for unremittable income
• Where debts are released after cessation, the post-cessation receipt treatment may be modified by the car hire rules
• Two provisions can take amounts outside the post-cessation receipts charge: where a trade is acquired and the receipts relate to the transferor's trade, or where rights are transferred to someone who carries on a trade