C1Part 3Trading income
Annotations:
Modifications etc. (not altering text)
Chapter 15Post-cessation receipts
Sums treated as post-cessation receipts
193Debts released after cessation
1
This section applies if—
a
in calculating the profits of a trade of any period for corporation or income tax purposes, a deduction is allowed for the expense giving rise to a debt owed by the person who carried on the trade,
b
the person has permanently ceased to carry on the trade at or after the end of that period,
c
after the cessation, all or part of the debt is released, and
d
the release is not part of a statutory insolvency arrangement.
2
The amount released is treated as a post-cessation receipt.
Pt. 3 modified (1.1.2010) by Northern Rock plc (Tax Consequences) Regulations 2009 (S.I. 2009/3227), regs. 1, 4(1)