Income Tax (Trading and Other Income) Act 2005 section 351

Income charged

Section 351 establishes how post-cessation receipts from a UK property business are charged to income tax, including the reliefs available and the treatment where the cash basis was used.

• Tax is charged on the full amount of post-cessation receipts received in the tax year.
• The charge is reduced by allowable deductions and by any election to carry back those receipts to an earlier year, applying the same rules as for post-cessation trade receipts but treating references to a trade as references to a UK property business.
• Where the property business permanently ceased in a tax year for which profits were calculated on the cash basis, the allowable deductions rules assume that the business profits were calculated on the cash basis.
• A tax year is a "cash basis tax year" for a property business if the profits of that business for the year are calculated on the cash basis.