skip to navigationskip to main content

Post cessation receipts and expenses

According to HMRC’s published guidance there are special rules for the taxation of post-cessation receipts and expenses. These provisions apply to professions, vocations and trades.


Tax relief may be available for post-cessation expenses of a trade, although such expenses still have to satisfy the wholly and exclusively test and be revenue in nature to qualify for relief. In order to be an allowable post-cessation expense, the trade must have ceased, and the expense would, in the normal course of events, have been deductible in calculating trading profits. Post-cessation expenses must be set against post-cessation receipts arising in the same period, before any other method of relief can be considered.


There are a number of different ways in which post-cessation expenses can be relieved. Relief will depend on the person incurring the expenditure and the type of expenditure incurred.


An expense specifically relating to the cessation itself is not an allowable expense.

Working with you

Whether you're starting from scratch or have been in business for years you'll benefit from working with D.R.E. & Co. advice on how to take you to the next level.

fixed-quote-man.jpg

About us

We work closely with our clients and act for a broad range of business....

business-advice-couple.jpg

Get in touch

Simple way to contact us. Just fill in a simple form.

free-consultation-couple.jpg

Our services

Find out details about what we can do
for you.