Commentary on Sections Overview Overview Section 199: Deductions already made are not displaced
741.This section is a rule about losses allowed against a post-cessation receipts carried back to the period of cessation under section 198. It is new.
742.The rule in this section is broadly the same as the income tax rule in paragraph 5(5) of Schedule 1B to TMA. If relief has already been given under section 196, for a period later than the period of cessation, this section makes clear that the relief is not to be re-calculated as a result of the election under section 198.
743.The section refers only to a “loss” for which a deduction has already been made. Any “expense or debit” already allowed under section 196 would in any event not be available for the accounting period in which the cessation occurred.
744.Subsection (3) makes clear that the rule about “displacing” a deduction for a loss does not apply to a deduction that has been made from the post-cessation receipt that is to be carried back.
745.See Change 42 in Annex 1.