Textual Amendments
F1Words in Pt. 2 Ch. 12 heading inserted (with effect in accordance with s. 37(2) of the amending Act) by Finance Act 2008 (c. 9), Sch. 15 para. 3
(1)The value of trading stock belonging to the trade at the time of the cessation is determined as follows.
(2)If the stock is sold to a person who—
(a)carries on, or intends to carry on, a trade[F2, profession or vocation] in the United Kingdom, and
(b)is entitled to deduct the cost of the stock as an expense in calculating the profits of that trade[F3 , profession or vocation] for income or corporation tax purposes,
the value is determined in accordance with section 176 (sale to unconnected person), 177 (sale to connected person) or 178 (election by connected persons).
(3)But if section 127 (preventing abuse of the herd basis rules) applies—
(a)the value is not determined in accordance with any of those sections, and
(b)the value is instead taken to be that given by section 127 (the price which the animals transferred would have fetched if sold in the open market at the time of the sale).
(4)In any other case, the value is taken to be the amount which the stock would have realised if sold in the open market at the time of the cessation.
Textual Amendments
F2Words in s. 175(2)(a) inserted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 605(a) (with Sch. 2 Pts. 1, 2)
F3Words in s. 175(2)(b) inserted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 605(b) (with Sch. 2 Pts. 1, 2)