Income Tax (Trading and Other Income) Act 2005 section 183

Meaning of "work in progress"

Section 183 defines "work in progress" for the purposes of the rules on cessation of a profession or vocation.

• Work in progress means services performed in the ordinary course of a profession or vocation that are wholly or partly completed at the time the profession or vocation ceases.
• The services must be ones for which it would be reasonable to expect a charge to be made if the profession or vocation had not ceased and, where services are only partly completed, if they had been fully completed.
• The definition also includes any articles produced and any materials used in performing those services.
• A transfer of work in progress includes the transfer of any benefits and rights that have accrued, or might reasonably be expected to accrue, from the performance of the services.