Pt3 Ch11 Corporation Tax Act 2009 (CTA 2009) and Pt 2 Ch12 Income Tax (Trading and Other Income) Act 2005 (ITTOIA 2005)

Pt3 Ch11 CTA 2009 (companies) and Pt2 Ch12 ITTOIA 2005 (individuals) apply whenever a trade, profession or vocation is discontinued. They fix the closing value of stock or work in progress to be used in computing the profits of the ceasing business and, in some circumstances, the cost of the stock for the business acquiring it.

In general the value of the stock or work in progress is what would be given in an arm's length sale (S164(4) CTA 2009 and S175(4), S184(2)CTA 2009), see BIM33525.

Special rules apply however if:

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