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Home / Simons-Taxes /Business tax /Part B2 How are trade profits and losses calculated? /Division B2.8 Post-cessation receipts /Post-cessation receipts—general / B2.808 Reliefs and elections
Commentary

B2.808 Reliefs and elections

Business tax

For income tax purposes where a trader has permanently discontinued a trade and the income arising from that trade was relevant UK earnings1, then the post-cessation receipts arising from the trade are similarly relevant UK earnings. The level of relevant UK earnings is important in calculating the limit of tax relieved pension contributions2.

Election to carry back post-cessation receipts

Where a post-cessation receipt is received by a person in a tax year beginning no later than six years after the permanent discontinuance of the trade, the person, or, in the

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