Section 169: Cost to buyer of stock valued on sale basis of valuation
626.This section sets out the rule for the buyer of the stock. It is based on section 100 of ICTA. The corresponding rule for income tax is in section 180 of ITTOIA.
627.In a “sale basis” case, the value given to the trading stock of the company whose trade has ceased is also used to calculate the profits of the buyer of the stock.
628.The reference to ITTOIA caters for the case where the stock is acquired from a person liable to income tax. The valuation under that Act for income tax purposes is used as the cost to the buyer who is liable to corporation tax.