87 Debts set off against profits and subsequently released

(1) Where a deduction in respect of any debt has been allowed in the computation of the profits/gains of a trade or profession and that debt is subsequently released, the amount of debt released is treated as a receipt arising in the period in which the release takes place.

(2) The amount of the debt released is treated as a post-cessation receipt under section 91 if the release occurred after the discontinuance of the trade or profession.

Relevant Date: Finance Act 2021