Commentary

B2.207 Receipts following the acquisition of a trade

Business tax
Business tax | Commentary

B2.207 Receipts following the acquisition of a trade

Business tax | Commentary

B2.207 Receipts following the acquisition of a trade

If an amount is received after a trade has permanently ceased, the amount received will usually be taxed in a period in which the trade was actually being carried on, or as a post-cessation receipt (see Division B2.8).

However, special rules apply if the cessation of the trade is accompanied by a transfer of the trade to another person, together with the transfer of the right to receive receipts from that trade, as set out below:

  1.  

    •     if a sum is received by the transferee (ie it relates to the transferor's trade but

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