Stock: trading transactions in: ways of disposing of or acquiring stock
Stock can give rise to a profit or loss by:
- appropriations to and from stock,
- insurance claim for partial or total loss,
- barter transactions,
- use in the construction of a fixed asset,
- write off of all or part due to obsolescence or slow moving, see stock valuation (BIM33100 onwards),
- fall in net realisable value, see stock valuation (BIM33100 onwards),
- theft or other loss.
The tax value at which stock is disposed of, or acquired, depends on whether the disposal is in the course of the trade or otherwise. There are also some statutory rules covering specific situations, see the flowchart (Word 29.5KB).
If the transaction is in special circumstances or is not a trading transaction you may find guidance at:
|BIM33450 onwards||Stock and work in progress valuation when trade, profession or vocation discontinued|
|BIM33600 onwards||Stock valuation when stock is transferred otherwise than in the course of trading: general principles|