Part 3

Trading income
Chapter 15

Post-cessation receipts

Charge to tax on post-cessation receipts

Extent of charge to tax
189
1
A post-cessation receipt is chargeable to tax under this Chapter only so far as it is not otherwise chargeable to corporation or income tax.
2
Accordingly, a post-cessation receipt arising from a trade is not chargeable to tax under this Chapter so far as it is brought into account in calculating the profits of the trade of any period.
3
A post-cessation receipt is not chargeable to tax under this Chapter if—
a
it is received by or on behalf of a non-UK resident company which is beneficially entitled to it, and
b
it represents income arising outside the United Kingdom.
4
A post-cessation receipt is not chargeable to tax under this Chapter if it arises from a trade carried on wholly outside the United Kingdom other than a company's trade of dealing in or developing UK land.
Pt. 3 modified (1.1.2010) by Northern Rock plc (Tax Consequences) Regulations 2009 (S.I. 2009/3227), regs. 1, 4(1)
Words in s. 189(4) inserted (with effect in accordance with s. 81 of the amending Act) by Finance Act 2016 (c. 24), s. 76(9) (and also with effect in accordance with Finance (No. 2) Act 2017 (c. 32), s. 39(1)(2))
Pt. 3 Ch. 15 applied (with modifications) (22.7.2020) by Finance Act 2020 (c. 14), Sch. 16 para. 2(3)(b)