Part 2Trading income
F1Chapter 11ATrade profits: changes in trading stock
Transfers of trading stock between trade and trader
172BTrading stock appropriated by trader
(1)
This section applies if trading stock of a person's trade is appropriated by the person for any other purpose.
(2)
In calculating the profits of the trade—
(a)
the amount which the stock appropriated would have realised if sold in the open market at the time of the appropriation is brought into account as a receipt, and
(b)
the value of anything in fact received for it is left out of account.
(3)
The receipt is treated as arising on the date of the appropriation.