(1)If a person permanently ceases to carry on a trade, in calculating the profits of the trade—
(a)trading stock belonging to the trade at the time of the cessation must be valued, and
(b)the value must be determined in accordance with sections 175 to 178 (bases of valuation).
(2)But no valuation of the stock is required under this Chapter if paragraph 1(2) of Schedule 28AA to ICTA (provision not at arm’s length) has effect in relation to any provision which—
(a)is made or imposed in relation to the stock, and
(b)has effect in connection with the cessation.
(3)If there is a change in the persons carrying on a trade, no valuation of the stock is required under this Chapter so long as a person carrying on the trade immediately before the change continues to carry it on after the change.
(4)If an individual carries on a trade alone, no valuation of the stock is required under this Chapter if the cessation is because of the individual’s death.