In the same way that post-cessation receipts are taxable income of the recipient, relief may be available for post-cessation expenses when calculating the amounts chargeable to tax1. A deduction is allowed for expenses which would have been deducted in calculating the profits of the trade for income or corporation tax purposes, if the trade had not been permanently discontinued2. This means that the expense still has to meet the wholly and exclusively test and be revenue, not capital, expenditure.
No deduction is
To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to Tolley+™ Research or register for a free trial
Web page updated on 17 Mar 2025 16:25