This email address is being protected from spambots. You need JavaScript enabled to view it.

ICAEW-BLK RGB

Tax News
Post cessation receipts and expenses
Mar 05, 2019

According to HMRC’s published guidance there are special rules for the taxation of post-cessation receipts and expenses. These provisions apply to professions, vocations and trades.

Tax relief may be available for post-cessation expenses of a trade, although such expenses still have to satisfy the wholly and exclusively test and be revenue in nature to qualify for relief. In order to be an allowable post-cessation expense, the trade must have ceased, and the expense would, in the normal course of events, have been deductible in calculating trading profits. Post-cessation expenses must be set against post-cessation receipts arising in the same period, before any other method of relief can be considered.

There are a number of different ways in which post-cessation expenses can be relieved. Relief will depend on the person incurring the expenditure and the type of expenditure incurred.

An expense specifically relating to the cessation itself is not an allowable expense.

Latest News

Wellington House
273-275 High Street,
LONDON COLNEY,
Herts AL2 1HA
Telephone
01707 664056

Search News