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SCHEDULES

SCHEDULE 10Tax

Part 2Provisions relating to Part 5

Income Tax and Corporation Tax

Trading stock

11(1)Sub-paragraph (2) applies, in the case of a Part 5 transfer of property consisting of the trading stock of a trade, for the purpose of computing any profits of the trade for tax purposes.

(2)If, because of the transfer, the trading stock is to be treated for that purpose as if it had been sold in the course of the trade, the amount realised on the sale is to be treated for that purpose as equal to its acquisition cost.

(3)Sub-paragraph (2) has effect in spite of anything in section 100 of the Taxes Act 1988 (valuation of trading stock at discontinuance).

(4)In this paragraph, trading stock and trade have the same meaning as in that section.