Income Tax (Trading and Other Income) Act 2005 section 350

Extent of charge to tax

Section 350 restricts the circumstances in which a post-cessation receipt can be charged to tax under this chapter, ensuring that amounts are not taxed twice.

• A post-cessation receipt is only taxable under this chapter if it is not already subject to income tax or corporation tax elsewhere
• This prevents double taxation of the same receipt under different provisions
• If a post-cessation receipt from a UK property business is already included in the profit calculations of that business for any period, it falls outside the scope of this chapter
• The section acts as a safeguard so that only genuinely untaxed post-cessation receipts are caught by these rules