Income Tax (Trading and Other Income) Act 2005 section 172A

Meaning of "trading stock"

Section 172A defines what counts as "trading stock" for the purposes of the rules in this chapter dealing with trading stock.

• Trading stock means any item — including land or other property — that is sold in the ordinary course of a trade, or would be sold if it were mature or its manufacture, preparation or construction were complete
• The definition deliberately excludes raw materials used in making trading stock, services performed in the ordinary course of the trade, and any articles or materials used in performing those services
• The distinction matters because the tax rules in this chapter apply specifically to trading stock, not to the inputs or services that go into producing it
• The definition covers items at any stage of completion, so stock that is still being manufactured or grown is included, but the materials consumed in that process are not