Part 12Accrued income profits
Chapter 2Accrued income profits and losses
Further transactions treated as transfers
650Trading stock appropriations etc
1
Subsection (2) applies if a person—
a
acquires securities otherwise than as trading stock of a trade the person carries on, and
b
appropriates the securities as trading stock for the purposes of such a trade (whether on the start of the trade or otherwise).
2
The person is treated for the purposes of this Chapter as transferring the securities otherwise than in the course of the trade, and re-acquiring them in the course of the trade, on the day of appropriation.
3
Subsection (4) applies if securities—
a
form part of the trading stock of a person's trade, and
b
are appropriated by the person for any other purpose.
4
The person is treated for the purposes of this Chapter as transferring the securities in the course of the trade, and re-acquiring them otherwise than in the course of the trade, on the day of appropriation.
5
Subsection (6) applies if securities—
a
form part of the trading stock of a person's trade, and
b
are retained by the person on ceasing to carry on the trade.
6
The person is treated for the purposes of this Chapter as transferring the securities in the course of the trade, and re-acquiring them otherwise than in the course of the trade, on the day of cessation.
7
See sections 623(2) to (4) and 624(2) to (4) for cases where securities are treated as transferred with or without accrued interest where this section applies.