Commentary

B2.212 Valuation of non-monetary receipts

Business tax
Business tax | Commentary

B2.212 Valuation of non-monetary receipts

Business tax | Commentary

B2.212 Valuation of non-monetary receipts

A taxable receipts arising from a transaction may take the form of money's worth instead of money, for example, shares1 or ground annuals2. The figure to be brought into the calculation of trading profits is the realisable value of the asset received.

In Gold Coast Selection Trust3 the House of Lords considered a case where a trader in the course of his trade received an asset, other than cash, which was not immediately realisable. The taxpayer was a trust company carrying on the trade of dealing in stocks and shares, and exploiting and dealing in gold-mining

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