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HMRC internal manual

Business Income Manual

HM Revenue & Customs
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Post-cessation receipts and expenses: receipts which are not post-cessation receipts: lump sums paid to personal representatives for copyright

S253 Income Tax (Trading and Other Income) Act 2005

Payments received by personal representatives for the sale of literary or design rights are specifically excluded from the scope of the charge to tax

This guidance applies to personal representatives only.

A professional author or designer may receive lump sums from the sale of rights (both copyright and public lending rights) in artistic works in the course of carrying on a trade. Such sums are brought into account in calculating the profits of the trade.

Where the sale of such rights is made by the personal representatives after the death of the author or designer, the sums received are not post-cessation receipts in the hands of the personal representatives.

This exclusion is very specific. Payments received by any other persons in relation to such rights would be post-cessation receipts. Similarly, payments received by personal representatives for rights which fall outside the list in the legislation are similarly taxable as post-cessation receipts.

Other receipts which are not post-cessation receipts

Other receipts which are specifically excluded from being post-cessation receipts are:

  • payments for transfer of trading stock (see BIM90055)
  • payments for transfer of work in progress (see BIM90060).