Corporation Tax Act 2009 section 158

Trading stock supplied by trader

Section 158 sets out the rule for calculating the cost of an item when a company transfers something it already owns into its trading stock.

• The section applies when a company moves a non-trading-stock asset into its trading stock
• The cost of the stock is deemed to be its open market value at the time it becomes trading stock
• Any amount actually given or received for the item is ignored in the profits calculation
• The cost is treated as incurred on the date the item became trading stock