Section 193 — Corporation Tax Act 2009: Debts released after cessation

Debts released after cessation 193 1 This section applies if—

a in calculating the profits of a trade of any period for corporation or income tax purposes, a deduction is allowed for the expense giving rise to a debt owed by the person who carried on the trade, b the person has permanently ceased to carry on the trade at or after the end of that period, c after the cessation, all or part of the debt is released, and d the release is not part of a statutory insolvency arrangement.

2 The amount released is treated as a post-cessation receipt.