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Post cessation receipts and payments

There are special rules for the taxation of post-cessation receipts and expenses after a trade has ceased. These provisions also apply to professions and vocations as they apply to trades.

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

There are a number of different ways in which post-cessation expenses can be relieved These 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.

Source: HM Revenue & Customs Tue, 17 Aug 2021 00:00:00 +0100

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Some accountancy websites also provide pages and pages of tax information, helpsheets, etc. We prefer to give clients personally tailored advice. So, if you want details of tax rates and allowances just go to the HMRC website on which you should find what you’re looking for. If you need more individual advice please contact us.

Below are links to websites you may find of interest, but as we like to support our local community and clients, we have included links to websites that may be of interest:

HMRC
FT
BBC
VEALE WASBROUGH VIZARDS
CESP
PRACTICE INDEX
SIMCOMM ACADEMY

More Local:
FOOTPLATE EXPERIENCE
ANGLEBURY PRESS
OFFCAMBER.CO.UK