Commentary

C3.802 Assets appropriated from trading stock

Capital gains tax
Capital gains tax | Commentary

C3.802 Assets appropriated from trading stock

Capital gains tax | Commentary

C3.802 Assets appropriated from trading stock

Where an asset forming part of the trading stock of a person's trade is appropriated by him for any other purpose, or is retained by him on ceasing to carry on the trade, he is treated for capital gains tax purposes as having acquired it for a consideration equal to the amount brought into the accounts of the trade in respect of it for tax purposes1. This will normally be the market value at the date of appropriation2 or cessation of trading3.

Example

On 31 March 2008 a property dealer decided to take a cottage, which

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