BIM90005 - Post-cessation receipts and expenses: has the trade ceased?

If the trade has not ceased, the receipts and expenses do not fall within the post-cessation legislation

This is the first question that you must consider when applying this legislation. The continuation of receipts following cessation may, in some cases, mean that the trade has not ceased.

For example, an author has not necessarily discontinued his trade when he ceases to write professionally (unless as a consequence of his death). The transfer of rights to receive a sum which is a post-cessation receipt is discussed in BIM90050.

For further guidance on this subject, see:

• general principles of cessation of trade (see BIM80565)
• cessation due to death or insolvency (see BIM80570)
• whether the collection of trade debts on cessation amounts to a trade (see BIM80575)
• whether a break in activities constitutes cessation of trade (see BIM80580)
• cessation of a profession or vocation (see BIM80585).