Income Tax (Trading and Other Income) Act 2005 section 186

Determination of questions

Section 186 establishes how disputes about the valuation of trading stock and work in progress on cessation of a trade should be resolved.

• Any dispute about the valuation of trading stock on cessation (under sections 175(3) and 176 to 178) must be resolved through the same process as a tax appeal
• Any dispute about the valuation of work in progress transferred for valuable consideration (under section 184(1)) must also follow the appeal process
• These valuations matter because they affect the tax liabilities of both the trader who ceases and any trader who takes over the stock or work in progress
• Subsections (2) to (4) were repealed by the Transfer of Tribunal Functions and Revenue and Customs Appeals Order 2009