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844Income charged on withdrawal of relief after source ceases

(1)    This section applies if—

(a)    income is treated as arising as a result of section 843, and

(b)    at the time it is so treated the person who would have become liable for income tax as a result of that section—

(i)    has permanently ceased to carry on the trade, profession, vocation or property business from which the income arises, or

(ii)    in the case of income from another source, has ceased to possess that source.

(2)    In the case of income from a trade, profession or vocation—

(a)    the income is treated as a post-cessation receipt for the purposes of Chapter 18 of Part 2 (trading income: post-cessation receipts), but

(b)    in the application of that Chapter to that income, section 243 (extent of charge to tax) is omitted.

(3)    In the case of income from a property business—

(a)    the income is treated as a post-cessation receipt from a UK property business for the purposes of Chapter 10 of Part 3 (property income: post-cessation receipts), but

(b)    in the application of that Chapter to that income, section 350 (extent of charge to tax) is omitted.

(4)    In the case of income from another source, the income is taxed as if the person continued to possess that source.

NOTES
Initial Commencement
Specified date

This Act comes into force on 6 April 2005 and has effect, for the purposes of income tax for the year 2005–06 and subsequent tax years, and for the purposes of corporation tax for accounting periods ending after 5 April 2005: see s 883; for transitional provisions and savings see Sch 2 hereto.
Foreign Income93 Income Tax Allowances, Deductions & Reliefs92 Property Taxes94 Company Law & Business Entities92 Companies & Corporate Bodies92 Property Income94 Income Tax94 Trading Income92 Real Property Law94 Administration & Collection of Income Tax94 International Tax99 Tax Law94 Personal Taxes94 Overseas Elements of Income Tax99

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