Commentary

B2.807 Post-cessation expenses

Business tax
Business tax | Commentary

B2.807 Post-cessation expenses

Business tax | Commentary

B2.807 Post-cessation expenses

In the same way that post-cessation receipts are taxable income of the recipient, relief may be available for post-cessation expenses when calculating the amounts chargeable to tax1. A deduction is allowed for expenses which would have been deducted in calculating the profits of the trade for income or corporation tax purposes, if the trade had not been permanently discontinued2. This means that the expense still has to meet the wholly and exclusively test and be revenue, not capital, expenditure.

No deduction is allowed if the expense arises directly or indirectly from the cessation itself3.

No deduction is

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