A post-cessation receipt is income received after a trade has been permanently discontinued1, and which arises from the carrying on of that trade before the discontinuance2.
If, immediately before a person permanently ceases to carry on a trade, the cash basis applies (either because a cash basis election has been made for periods up to and including tax year 2023/24 or by default from 2024/25 onwards, see B2.111 and B2.112), a sum is only treated as taxable if it would have been brought into account in calculating the profits of the trade on a cash basis if it had been received at that time3.
A company is treated as ceasing to carry on a trade when it ceases to be within the charge to corporation tax in respect of that trade4.
Prior to the
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