177Sale basis of valuation: sale to connected personU.K.
(1)The value of trading stock is determined in accordance with this section if—
(a)it is sold to a person who carries on, or intends to carry on, a trade[F1, profession or vocation] in the United Kingdom and is entitled to deduct the cost of the stock as an expense in calculating the profits of that trade[F1, profession or vocation] for income or corporation tax purposes,
(b)the buyer is connected with the seller, and
(c)no election is made under section 178 (election by connected persons).
(2)The value is taken to be the amount which would have been realised if the sale had been between independent persons dealing at arm's length.
Textual Amendments
F1Words in s. 177(1)(a) inserted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 607 (with Sch. 2 Pts. 1, 2)