11(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 section 100 of the Taxes Act 1988 [F1or section 173 of ITTOIA 2005] (valuation of trading stock at discontinuance [F1or cessation]).
(4)In this paragraph, trading stock and trade have the same meaning as in [F2section 100 of the Taxes Act 1988 or (as the case may be) section 174 of ITTOIA 2005].
Textual Amendments
F1Words in Sch. 10 para. 11(3) inserted (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 583(6)(a) (with Sch. 2)
F2Words in Sch. 10 para. 11(4) substituted (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 583(6)(b) (with Sch. 2)
Commencement Information
I1Sch. 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)