{
  "url": "https://openlegislation.uk/income-tax-trading-and-other-income-act-2005/section-246",
  "json_url": "https://openlegislation.uk/income-tax-trading-and-other-income-act-2005/section-246.json",
  "legislation": "ukpga/2005/5",
  "legislation_title": "Income Tax (Trading and Other Income) Act 2005",
  "legislation_url": "https://openlegislation.uk/income-tax-trading-and-other-income-act-2005",
  "path": "section/246",
  "kind": "section",
  "number": "246",
  "heading": "Basic meaning of “post-cessation receipt”",
  "text": "(1) In this Part “post-cessation receipt” means a sum—\n(a) which is received after a person permanently ceases to carry on a trade, and\n(b) which arises from the carrying on of the trade before the cessation.\n(2) For this purpose the reference to a person permanently ceasing to carry on a trade includes a reference to a company ceasing to be within the charge to corporation tax in respect of a trade.\n(2A) If, immediately before a person permanently ceases to carry on a trade, the cash basis applies 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.\n(3) Subsection (4) applies if—\n(a) a firm carries on a trade, and\n(b) a person ceases to be a partner in the firm, ...\n(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n(4) The partner is treated for the purposes of this Chapter as permanently ceasing to carry on the trade.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Words in s. 246(2) substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 612 (with Sch. 2 Pts. 1, 2)"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "S. 246(2A) inserted (with effect in accordance with Sch. 4 paras. 56, 57 of the amending Act) by Finance Act 2013 (c. 29), Sch. 4 para. 39(2)"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "Words in s. 246(2A) substituted (6.4.2024 for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 10 paras. 29, 47 (with Sch. 10 paras. 48-50)"
    },
    {
      "type": "F",
      "label": "F4",
      "text": "Word in s. 246(3)(a) inserted (6.4.2024 for the tax year 2024-25 and subsequent tax years) by Finance Act 2022 (c. 3), Sch. 1 paras. 19(a), 61(1)"
    },
    {
      "type": "F",
      "label": "F5",
      "text": "S. 246(3)(c) and word omitted (6.4.2024 for the tax year 2024-25 and subsequent tax years) by virtue of Finance Act 2022 (c. 3), Sch. 1 paras. 19(b), 61(1)"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2005/5/section/246",
    "retrieved_at": "2026-10-29T09:16:32.370392+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}