Corporation Tax Act 2009 section 159

Disposals not made in the course of trade

Section 159 deals with how trading stock must be valued for tax purposes when it is disposed of outside the normal course of the trade, and the trader has not personally appropriated the stock.

• When trading stock is disposed of other than in the normal course of trade, and the trader has not personally taken the stock, a special valuation rule applies
• The open market value of the stock at the date of disposal must be brought into the trade profit calculation as a receipt, replacing any actual consideration received
• The deemed receipt is treated as arising on the date of the disposal
• Transfer pricing rules, where applicable, take precedence over this section