Part 3Property income
Chapter 10Post-cessation receipts
Meaning of “post-cessation receipts”
353Basic meaning of “post-cessation receipt”
(1)
In this Chapter “post-cessation receipt” means a sum—
(a)
which is received after a person permanently ceases to carry on a UK property business, and
(b)
which arises from the carrying on of the business before the cessation.
F1(1A)
If the time immediately before a person permanently ceases to carry on a UK property business falls in a cash basis tax year (see section 351(4)), 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 business on the cash basis had it been received at that time.
(2)
Subsection (3) applies if—
(a)
a firm carries on a UK property business,
(b)
a person ceases to be a partner in the firm, and
(c)
at least one of the persons with whom the partner carried on the business before ceasing to be a partner continues to carry it on afterwards.
(3)
The partner is treated for the purposes of this Chapter as permanently ceasing to carry on the business.