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HMRC internal manual

Capital Gains Manual

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HM Revenue & Customs
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Appropriations from stock in trade: TCGA92 S161 (2)

TCGA92/S161 (2)

Where an asset forming part of the trading stock of a person’s trade is appropriated by that person for any other purpose, or is retained by that person on cessation of the trade, TCGA92/S161 (2) provides that the value at which the asset is taken out of the trading account should be treated as the consideration given for acquisition of the asset for capital gains purposes. The asset is also to be treated for capital gains purposes as if it had been acquired at the time of the appropriation from stock in trade. The question of whether the asset was held at 31 March 1982 is to be determined by the deemed date of acquisition rather than by the actual date of acquisition.