Part 2Trading income
F1Chapter 11ATrade profits: changes in trading stock
Annotations:
Amendments (Textual)
Other disposals not made in the course of trade
172EAcquisitions not made in the course of trade
1
This section applies if—
a
trading stock of a trade has been acquired otherwise than in the course of trade, and
b
section 172C does not apply.
2
In calculating the profits of the trade—
a
the cost of the stock is taken to be the amount which it would have realised if sold in the open market at the time of the acquisition, and
b
the value of anything in fact given for it is left out of account.
3
The cost is treated as being incurred on the date of the acquisition.
4
This section is subject to section 172F.
Pt. 2 Ch. 11A inserted (with effect in accordance with s. 37(2) of the amending Act) by Finance Act 2008 (c. 9), Sch. 15 para. 2