Section 353 Basic meaning of “post-cessation receipt”C1

United Kingdom

(1)

In this Chapter “post-cessation receipt” means a sum—

(a)

which is received after a person permanently ceases to carry on a UK property business, and

(b)

which arises from the carrying on of the business before the cessation.

F1(1A)

If the time immediately before a person permanently ceases to carry on a UK property business falls in a cash basis tax year (see section 351(4)), 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 business on the cash basis had it been received at that time.

(2)

Subsection (3) applies if—

(a)

a firm carries on a UK property business,

(b)

a person ceases to be a partner in the firm, and

(c)

at least one of the persons with whom the partner carried on the business before ceasing to be a partner continues to carry it on afterwards.

(3)

The partner is treated for the purposes of this Chapter as permanently ceasing to carry on the business.

Annotations

Textual amendments

F1: S. 353(1A) inserted (16.11.2017) (with effect in accordance with Sch. 2 para. 64 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 2 para. 31

Modifications

C1: Ss. 353-368 modified (7.4.2005) by Finance Act 2005 (c. 7), s. 51(2)

Notes on Chapter 10

Modifications

C1: Pt. 3 Ch. 10 applied (with modifications) (22.7.2020) by Finance Act 2020 (c. 14), Sch. 16 para. 2(4)(a)