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HMRC internal manual

Business Income Manual

Stock: valuation on discontinuance of business: stock not transferred to another trader

S164(4) Corporation Tax Act 2009 and S175(4) Income Tax (Trading and Other Income) Act 2005

Where trading stock is not transferred to a UK trader, the closing stock value to be used is defined as the `amount which it would have realised if it had been sold in the open market’. This is the net amount realisable by disposal of the stock in bulk under practical business conditions. It does not imply a ‘fire sale’, but the price that the goods would have fetched at the normal time for sale.