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HMRC internal manual

Business Income Manual

HM Revenue & Customs
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Farming: stock valuation: general

S30 Income Tax (Trading and Other Income) Act 2005, S50 Corporation Tax Act 2009

The principles of stock valuation for tax purposes, are set out at BIM33100 onwards, together with practical guidance on reviewing the stock valuation in a set of accounts. Those paragraphs apply equally to the valuation of farming stocks and provide the context within which the following paragraphs should be read.

The Department publishes Helpsheet 232, an authoritative statement of the methods of valuing farming stock which are acceptable to HMRC. It was prepared after consultation with interested professional bodies and was originally published as Business Economic Note 19 (‘BEN19’). Farmers and their professional advisors who follow its guidelines should be able to feel confident that their methods of valuation will be accepted.

Helpsheet 232 is reproduced in BIM55410.

Farm animals are by statute to be treated as trading stock and valued accordingly.