Part 4Loss relief
Chapter 4Losses from property businesses
Post-cessation property relief
125Post-cessation property relief
1
A person may make a claim for post-cessation property relief if, after permanently ceasing to carry on a UK property business (whether carried on alone or in partnership)—
a
the person makes a qualifying payment, or
b
a qualifying event occurs in relation to a debt owed to the person,
and the payment is made, or the event occurs, within 7 years of that cessation.
2
If the claim is made in respect of a payment, the claim is for the payment to be deducted in calculating the person's net income for the tax year in which the payment is made (see Step 2 of the calculation in section 23).
3
If the claim is made in respect of an event, the claim is for the appropriate amount of the debt to be deducted in calculating the person's net income for the relevant tax year (see Step 2 of the calculation in section 23).
4
The claim must be made on or before the first anniversary of the normal self-assessment filing date for the tax year for which the deduction is to be made.
5
If—
a
the person is a company within the charge to income tax under Chapter 3 of Part 3 of ITTOIA 2005 in respect of a UK property business, and
b
the company ceases at any time to be within that tax charge in respect of the business,
the company is treated for the purposes of this section as permanently ceasing to carry on the business at that time.
6
The following provisions apply for the purposes of post-cessation property relief as they apply for the purposes of post-cessation trade relief (but as if any reference to a trade were to a UK property business)—
a
section 97 (meaning of “qualifying payment”),
b
section 98 (meaning of “qualifying event” etc),
c
section 99 (reduction of relief for unpaid trade expenses), and
d
section 100 (prohibition against double counting).