S249 Income Tax (Trading and Other Income) Act 2005, S193 Corporation Tax Act 2009

If a debtor is released from a debt after ceasing to trade this is a post-cessation receipt so long as it is not released as part of a statutory insolvency arrangement

On the flip side to BIM90030, a person is treated as having received a post-cessation receipt where:

(1)a deduction from trading profits has been allowed for an expense incurred, but that expense has not actually been paid, giving rise to a debt owed by the trader

(2)the trade has since ceased

(3)the debt is released, and

(4)the release is not part of a statutory insolvency arrangement.

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