Modifications etc. (not altering text)
C1Pt. 2 Ch. 18 applied (with modifications) (22.7.2020) by Finance Act 2020 (c. 14), Sch. 16 para. 2(3)(a)
(1)In this Part “post-cessation receipt” means a sum—
(a)which is received after a person permanently ceases to carry on a trade, and
(b)which arises from the carrying on of the trade before the cessation.
(2)For this purpose the reference to a person permanently ceasing to carry on a trade includes [F1a reference to a company ceasing to be within the charge to corporation tax in respect of a trade.]
[F2(2A)If, immediately before a person permanently ceases to carry on a trade, an election under section 25A (cash basis for small businesses) has effect in relation to the trade, a sum is to be treated as a post-cessation receipt only if it would have been brought into account in calculating the profits of the trade on the cash basis had it been received at that time.]
(3)Subsection (4) applies if—
(a)a firm carries on a trade,
(b)a person ceases to be a partner in the firm, and
(c)the departure results in the partner permanently ceasing to carry on the notional trade (see section 852).
(4)The partner is treated for the purposes of this Chapter as permanently ceasing to carry on the trade.
Textual Amendments
F1Words in s. 246(2) substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 612 (with Sch. 2 Pts. 1, 2)
F2S. 246(2A) inserted (with effect in accordance with Sch. 4 paras. 56, 57 of the amending Act) by Finance Act 2013 (c. 29), Sch. 4 para. 39(2)