Part 2

Trading income
Chapter 11A

Trade profits: changes in trading stock

Transfers of trading stock between trade and trader

Trading stock supplied by trader
172C
1
This section applies if something that—
a
belongs to a person carrying on a trade, but
b
is not trading stock of the trade,
becomes trading stock of the trade.
2
In calculating the profits of the trade—
a
the cost of the stock is taken to be the amount which it would have realised if sold in the open market at the time it became trading stock of the trade, and
b
the value of anything in fact given for it is left out of account.
3
The cost is treated as being incurred on the date it became trading stock of the trade.
Pt. 2 Ch. 11A inserted (with effect in accordance with s. 37(2) of the amending Act) by Finance Act 2008 (c. 9), Sch. 15 para. 2