Transport Act 2000

Transfers of trading stock E+W+S+N.I.

12 (1) This paragraph applies if— E+W+S+N.I.

(a) under a relevant transfer trading stock of the transferor is transferred to the transferee, and

(b) the stock falls, immediately after the time when the transfer takes effect, to be treated as trading stock of the transferee.

(2) Sub-paragraphs (3) and (4) have effect in computing the profits or gains of the relevant trades for the purposes of the Corporation Tax Acts; and the relevant trades are—

(a) the trade in relation to which the stock is trading stock immediately before the time when the transfer takes effect, and

(b) the trade in relation to which it is trading stock after that time.

(3) The stock must be taken—

(a) to have been disposed of by the transferor in the course of the trade carried on by the transferor,

(b) to have been acquired by the transferee in the course of the trade carried on by the transferee, and

(c) subject to that, to have been disposed of and acquired at the time when the transfer takes effect.

(4) The stock must be valued for the purposes of each of the relevant trades as if the disposal and acquisition had been for a consideration which in relation to the transferor would have resulted in neither a profit nor a loss being brought into account in respect of the disposal in the accounting period of the transferor which ends with, or is current at, the time when the transfer takes effect.

(5) In this paragraph “trading stock” has the same meaning as in section 100 of the 1988 Act.

Annotations:

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Commencement Information

I1 Sch. 7 paras. 1-20 wholly in force at 1.2.2001, see s. 275(1) and S.I. 2001/57, art. 3(1), Sch. 2 Pt. I (subject to the transitional provision and saving in Sch. 2 Pt. II)