(a)in calculating the profits of a trade for any period for income or corporation tax purposes, a deduction is allowed for the expense giving rise to a debt owed by the person who carried on the trade,
(b)the person has permanently ceased to carry on the trade at or after the end of that period,
(c)after the cessation, all or part of the debt is released, and
(d)the release is not part of a statutory insolvency arrangement.
249(2) The amount released is treated as a post-cessation receipt.