BIM80501 - Post-cessation receipts: Introduction
The Income Tax Acts provide for the taxation under Schedule D of certain receipts arising from the carrying on of a trade, profession or vocation which:
- because of a discontinuance of the business,
or
- following a change of accounting basis, before 5 April 1999,
do not enter into the computations under Case I or II.
The relevant provisions are contained in ICTA88/S103 - ICTA88/S110.
As regards:
i) ICTA88/S103 (4)(4A) which treats the release of a trade debt after the discontinuance of a business as a receipt, mirroring the legislation in ICTA88/S94, see BIM40265. If the write-back of the debt has already been brought into account the exclusion in S103 operates, see BIM80515.
ii) Post-cessation receipts chargeable under ICTA88/S491 (distribution of assets of body corporate carrying on mutual business), see BIM24615.
(iii) The treatment of professional etc work in progress on a discontinuance or change of accounting basis, see BIM70690.
