Part 3

Trading income
Chapter 10

Trade profits: changes in trading stock

Transfers of trading stock between trade and trader

Trading stock appropriated by trader
157
1
This section applies if trading stock of a company's trade is appropriated by the company for any other purpose.
2
In calculating the profits of the trade—
a
the amount which the stock appropriated would have realised if sold in the open market at the time of the appropriation is brought into account as a receipt, and
b
the value of anything in fact received for it is left out of account.
3
The receipt is treated as arising on the date of the appropriation.
Pt. 3 modified (1.1.2010) by Northern Rock plc (Tax Consequences) Regulations 2009 (S.I. 2009/3227), regs. 1, 4(1)