The legislation provides for two specific reliefs. These are:

the treatment of post-cessation receipts as relevant earnings; and

the election to carry back.

Relevant earnings

Post-cessation receipts are treated as relevant UK earnings provided that the following conditions are met (ITTOIA 2005, s. 256):

the individual has permanently ceased to trade, and

the trading income was relevant UK earnings (within FA 2004, s. 189(2)(b)).

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