There is a restriction on the relief outlined at ¶262-750 where (ITA 2007, s. 99):

a deduction for an accrued but unpaid expense has been allowed in calculating the taxable profits of the business which has ceased; and

that expense remains unpaid at the end of the tax year for which relief is claimed.

The amount of relief for the tax year is reduced by the total amount of the unpaid expenses at the end of the tax year or, in the case of a partner, that person's share of such expenses. Any accrued but unpaid expense will trigger the restriction, not just accruals in respect of the items relieved.

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