Income Tax Act 2007 section 125

Post-cessation property relief

Section 125 provides relief for certain qualifying payments and debt-related events that arise after a person has permanently ceased carrying on a UK property business.

• After permanently ceasing a UK property business, a person can claim relief for qualifying payments made or qualifying events relating to debts, provided these occur within 7 years of cessation
• Relief takes the form of a deduction from net income — either the amount of the qualifying payment or the appropriate amount of the debt — in the tax year the payment is made or the event occurs
• Claims must be submitted no later than the first anniversary of the normal self-assessment filing date for the tax year in which the deduction is sought
• The same definitions and restrictions that apply to post-cessation trade relief (qualifying payments, qualifying events, denial of relief for tax-generated items, reduction for unpaid expenses, and prohibition of double counting) also apply to post-cessation property relief, with references to a trade read as references to a UK property business