Taxes Consolidation Act 1997 section 95

Supplementary provisions as to tax under section 91 or 94

Section 95 sets out supplementary rules governing the taxation of post-cessation receipts and sums arising from a change of accounting basis, including the treatment of transferred rights, earned income status, timing elections, work in progress, and restrictions on loss relief.

• Where the right to receive a post-cessation receipt is sold or transferred for value, the consideration received (or an arm's length value if the transfer is not at market terms) is chargeable to tax in the hands of the person who assigns the right.
• Post-cessation receipts that relate to a business whose profits were treated as earned income before cessation retain their earned income status (after any reduction under section 93), preserving their treatment as relevant earnings for retirement relief purposes.
• A person who receives post-cessation receipts within four years of cessation (or a change of accounting basis) may elect to have those receipts taxed as if they arose in the final year of the business or in the year of the change, provided the election is made in writing within two years after the end of the tax year of receipt.
• Losses and capital allowances may only be deducted once against post-cessation receipts, must be set against earlier years before later years, and cannot be claimed if already relieved under any other provision of the Tax Acts.