{
  "url": "https://openlegislation.uk/income-tax-trading-and-other-income-act-2005/section-97A",
  "json_url": "https://openlegislation.uk/income-tax-trading-and-other-income-act-2005/section-97A.json",
  "legislation": "ukpga/2005/5",
  "legislation_title": "Income Tax (Trading and Other Income) Act 2005",
  "legislation_url": "https://openlegislation.uk/income-tax-trading-and-other-income-act-2005",
  "path": "section/97A",
  "kind": "section",
  "number": "97A",
  "heading": "Cash basis: value of trading stock on cessation of trade",
  "text": "(1) This section applies if—\n(a) a person permanently ceases to carry on a trade in a tax year, and\n(b) the cash basis applies in relation to the trade for the tax year.\n(2) The value of any trading stock belonging to the trade at the time of the cessation is brought into account as a receipt in calculating the profits of the trade for the tax year.\n(3) The value is to be determined on a basis that is just and reasonable in all the circumstances.\n(4) If there is a change in the persons carrying on a trade, subsection (2) does not apply in relation to the trade so long as a person carrying on the trade immediately before the change continues to carry it on after the change.\n(5) In this section “trading stock” has the same meaning as in Chapter 12 (see section 174).\n(6) This section does not apply to professions or vocations.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Ss. 97A, 97B and cross-heading inserted (with effect in accordance with Sch. 4 paras. 56, 57 of the amending Act) by Finance Act 2013 (c. 29), Sch. 4 para. 21"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "Words in s. 97A(1)(b) substituted (6.4.2024 for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 10 paras. 23, 47 (with Sch. 10 paras. 48-50)"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2005/5/section/97A",
    "retrieved_at": "2026-10-29T09:16:32.370392+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}