Finance Act 1976

Valuation of stock in certain cases

23 (1) For the purposes of this Schedule in ascertaining the entitlement of a person to relief, or his liability to a charge, in respect of any period of account—

(a) in a case where at any time during the twelve months preceding the beginning of that period of account he was not carrying on the trade in question ; or

(b) in a case where during that period of account there was a major alteration in the conduct of the trade in question which resulted in an exceptional increase in his trading stock,

he shall be treated as having at the beginning of that period of account trading stock of such value as may be attributed in accordance with this paragraph.

(2) If for any of the purposes of this Schedule there falls to be ascertained the value of any trading stock at a date other than the beginning or end of a period of account and when no value was in fact determined, that value shall be such as may be attributed in accordance with this paragraph.

(3) The value to be attributed is such value as is reasonable and just having regard to all the relevant circumstances of the case, and in particular—

(a) to the opening and closing values of trading stock of the trade for that period of account;

(b) to movements during that period of account in the costs of items of a kind comprised in the person's trading stock during the period; and

(c) to changes during that period in the volume of the trade carried on by that person.