Taxes Consolidation Act 1997 section 93

Cash basis, etc: relief for certain individuals

Section 93 provides age-related relief from the tax charge on post-cessation receipts for individuals who were at least 51 years old on 6 April 1970 and who had been using a conventional (non-earnings) basis of accounting for their trade or profession.

• Individuals born before 6 April 1919 who were carrying on a trade or profession on 4 August 1970 and accounting on a conventional basis may claim relief on post-cessation receipts taxable under sections 91 or 94.
• The relief works by multiplying the net taxable amount of post-cessation receipts by an age-related fraction, ranging from 19/20 (95%) for those under 52 on 6 April 1970 down to 5/20 (25%) for those aged 65 or over on that date.
• The "net amount" means the taxable post-cessation receipts after any deductions allowed under section 91 but before applying this relief; the "relevant date" is either the date of permanent discontinuance or the date of a change of accounting basis.
• Where a change of accounting basis occurred before 4 August 1970, the conditions for relief are modified so that the individual need only have been born before 6 April 1919 and been engaged in the business at the time of the change.