The legislation excludes two amounts from being a post-cessation receipt. These are:
•the transfer of trading stock or work in progress; and
•lump sums paid to personal representatives for copyright, etc.
Transfer of trading stock or work in progress
A person who ceases to carry on a trade, etc. will often realise value by selling the trading stock or work in progress. A valuation of the stock or work in progress will normally be brought into account by virtue of ITTOIA 2005, Pt. 2, Ch. 12, s. 173ff. (see ¶225-500ff.). In such cases, any sum realised will not then be treated as a post-cessation receipt as the value has already been taxed (ITTOIA 2005, s. 252). In the case of trading stock, this should apply in all cases.