Section 192 Debts 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.

Notes on Part 3

Modifications

C1: Pt. 3 modified (1.1.2010) by Northern Rock plc (Tax Consequences) Regulations 2009 (S.I. 2009/3227), regs. 1, 4(1)

Notes on Chapter 15

Modifications

C1: Pt. 3 Ch. 15 applied (with modifications) (22.7.2020) by Finance Act 2020 (c. 14), Sch. 16 para. 2(3)(b)