Part 3Trading income

Chapter 10Trade profits: changes in trading stock

Transfers of trading stock between trade and trader

157Trading stock appropriated by trader

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.