Part 3Trading income
Chapter 15Post-cessation receipts
Sums treated as post-cessation receipts
192Debts paid after cessation
(1)
This section applies if, in calculating the profits of a trade for corporation or income tax purposes, a deduction is made in respect of a debt under—
(a)
section 55 (bad debts), or
(b)
section 35 of ITTOIA 2005 (bad and doubtful debts),
and a person permanently ceases to carry on the trade.
(2)
A sum received after the cessation is treated as a post-cessation receipt so far as the deduction is made.