SCHEDULES

SCHEDULE 2Transitionals and savings etc.

Part 3Trading income

Valuation of trading stock on cessation

47

1

This paragraph applies if—

a

a period of account of a trade begins before 6th April 2004 and ends on or after 6th April 2005 (“the straddling period of account”), and

b

as a result of paragraph 48, the profits or losses of the period of account are to be calculated in accordance with Part 2 of this Act.

2

Subsection (2) of section 173 (valuation of trading stock on cessation) does not apply in relation to the part of the period of account which—

a

begins with the straddling period of account, and

b

ends with 5th April 2004,

and the profits or losses of the trade are to be calculated accordingly.