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S97A ITTOIA 2005, S97B ITTOIA 2005

If a person to whom cash basis applies for a tax year permanently ceases carrying on a trade in that tax year, the value of any trading stock at the time of cessation is brought into account as a receipt.

»Ê¹ÚÌåÓýapp value is to be determined on a basis that is just and reasonable in all the circumstances. For example, this might be the cost or net realisable value of the stock at the date of cessation.

»Ê¹ÚÌåÓýappre is no requirement to bring a receipt into account where there is a change in the persons carrying on a trade and a person carrying it on immediately before the change continues to carry it on after the change (for example, where there is a change in the partners in a partnership).

For a person carrying on a profession or vocation, the value of any work in progress at the time of cessation is brought into account in the same way as trading stock for a trader.