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HMRC internal manual

Business Income Manual

Stock: valuation on discontinuance of business: stock that is an exception from the general rules

Trading stock is widely defined in S163 Corporation Tax Act 2009 (CTA 2009) and S174 Income Tax (Trading and Other Income) Act 2005 (ITTOIA 2005) including for instance, long term contract work in progress.

But the definition does not apply to:

  • the valuation of work in progress of a profession or vocation (for Income Tax purposes) because this is separately dealt with in S182 ITTOIA 2005, see BIM33540. The rules for valuing work in progress of a profession or vocation do not apply for companies because a company cannot carry on a profession,
  • herd basis animals where the separate measures in S125 CTA 2009/S127 ITTOIA 2005 are applicable (S164(3) CTA 2009 and S175(3) ITTOIA 2005).