Corporation Tax Act 2009 (c. 4)

Part 3 U.K. Trading income

Modifications etc. (not altering text)

C1 Pt. 3 modified (1.1.2010) by Northern Rock plc (Tax Consequences) Regulations 2009 (S.I. 2009/3227), regs. 1, 4(1)

Chapter 10 U.K. Trade profits: changes in trading stock

Other disposals and acquisitions not made in the course of trade U.K.

159 Disposals not made in the course of trade U.K.

(1) This section applies if—

(a) trading stock of a trade is disposed of otherwise than in the course of the trade, and

(b) section 157 does not apply.

(2) In calculating the profits of the trade—

(a) the amount which the stock disposed of would have realised if sold in the open market at the time of the disposal is brought into account as a receipt, and

(b) any consideration obtained for it is left out of account.

(3) The receipt is treated as arising on the date of the disposal.

(4) This section is subject to section 161.

160 Acquisitions not made in the course of trade U.K.

(1) This section applies if—

(a) trading stock of a trade has been acquired otherwise than in the course of the trade, and

(b) section 158 does not apply.

(2) In calculating the profits of the trade—

(a) the cost of the stock is taken to be the amount which it would have realised if sold in the open market at the time of the acquisition, and

(b) the value of anything in fact given for it is left out of account.

(3) The cost is treated as being incurred on the date of the acquisition.

(4) This section is subject to section 161.