Paragraph 11 Trading stockI1

United Kingdom

(1)

Sub-paragraph (2) applies, in the case of a Part 5 transfer of property consisting of the trading stock of a trade, for the purpose of computing any profits of the trade for tax purposes.

(2)

If, because of the transfer, the trading stock is to be treated for that purpose as if it had been sold in the course of the trade, the amount realised on the sale is to be treated for that purpose as equal to its acquisition cost.

(3)

Sub-paragraph (2) has effect in spite of anything in F1 section 173 of ITTOIA 2005 or section 162 of the Corporation Tax Act 2009 (valuation of trading stock on cessation).

(4)

In this paragraph, trading stock and trade have the same meaning as in F2 section 174 of ITTOIA 2005 or (as the case may be) section 163 of the Corporation Tax Act 2009.

Annotations

Textual amendments

F1: Words in Sch. 10 para. 11(3) substituted (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. 547(3)(a) (with Sch. 2 Pts. 1, 2)
F2: Words in Sch. 10 para. 11(4) substituted (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. 547(3)(b) (with Sch. 2 Pts. 1, 2)

Commencement

I1: Sch. 10 para. 11 in force at 24.2.2003 by S.I. 2003/120, art. 2, Sch. (with arts. 3, 4) (as amended (20.2.2003) by S.I. 2003/333, art. 14)