Corporation Tax Act 2009 section 163

Meaning of "trading stock"

Section 163 defines what counts as "trading stock" for the purposes of the rules on trading income and related provisions.

• Trading stock includes any property (such as land or goods) that is sold in the ordinary course of a trade, or would be sold once mature or fully manufactured, prepared, or constructed
• It also includes raw materials used in the manufacture, preparation, or construction of such property
• Services performed in the ordinary course of the trade are included where they are wholly or partly completed at the point the trade ceases, provided it would be reasonable to expect a charge to be made for them
• References to the sale or transfer of trading stock extend to any benefits and rights arising, or reasonably expected to arise, from the performance of those services