Corporation Tax Act 2009 section 157

Trading stock appropriated by trader

Section 157 sets out how to account for trading stock when it is taken out of a company's trade and used for another purpose.

• When a company appropriates trading stock for any purpose other than its trade, a deemed sale at open market value must be recognised
• The open market value at the date of appropriation is brought into account as a trading receipt
• Any amount actually received for the stock is disregarded in the trading profit calculation
• The deemed receipt is treated as arising on the date the appropriation takes place