Paragraph 39

Chapter 18 (post-cessation receipts) is amended as follows.

In section 246 (basic meaning of “post-cessation receipt”), after subsection (2) insert—

“(2A)

If, immediately before a person permanently ceases to carry on a trade, an election under section 25A (cash basis for small businesses) has effect in relation to the trade, a sum is to be treated as a post-cessation receipt only if it would have been brought into account in calculating the profits of the trade on the cash basis had it been received at that time.”

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