Income Tax (Trading and Other Income) Act 2005 section 356

Application to businesses within the charge to corporation tax

Section 356 explains how the post-cessation receipts rules in this chapter apply where a UK property business is carried on by a company within the charge to corporation tax, rather than by an individual paying income tax.

• Throughout most of this chapter, references to a "UK property business" include one within the charge to corporation tax, but this broader meaning does not apply to sections 353(1A) or 355, nor to the modification of section 254 found in section 351(3).
• A company that ceases to be within the charge to corporation tax is treated as having permanently ceased its UK property business, meaning any subsequent receipts from that business can be caught by the post-cessation receipts rules and charged to income tax.
• Where provisions from Chapter 18 of Part 2 (which deal with post-cessation receipts from trades) are applied for the purposes of this chapter, any reference to calculating trade profits for corporation tax should be read as a reference to calculating UK property business profits for corporation tax.
• The section also covers the transitional position where sums arise from a Schedule A business carried on before the 2005–06 tax year, whether that business was carried on by an individual or a company.