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HMRC internal manual

Business Income Manual

HM Revenue & Customs
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Stock: meaning of: statutory definition

S 174 Income tax (Trading and Other Income) Act 2005, S 163 Corporation Tax Act 2009

The statutory definition of trading stock is wide. When considering whether these sections apply, the trading stock must fall within the statutory definition and relevant case law should be considered.

The statutory definition includes property which would be sold in the ordinary course of the trade, and any stock which is still being manufactured or otherwise being made ready for sale. It also includes raw materials and consumables, that is materials that are used up in the production process, and any items that would be treated as work in progress. It also includes any services, article or material that would be work in progress of a profession or vocation.