Corporation Tax Act 2009 section 156

Meaning of "trading stock"

Section 156 defines "trading stock" for the purposes of the rules on profits calculated on the basis of accounts that recognise profit as it accrues.

• Trading stock means anything — whether land or other property — that is sold in the ordinary course of a trade, or would be sold once mature or fully manufactured, prepared or constructed.
• Raw materials used in the manufacture, preparation or construction of trading stock are excluded from the definition.
• Services performed in the ordinary course of the trade are also excluded.
• Any article produced, or material used, in performing those services is likewise excluded.