Part 4: Income tax, corporation tax and capital gains tax Section 40: Changes in trading stock not made in course of trade Summary
This section amends legislation that applies where trading stock is acquired or disposed of other than by way of trade. It ensures that where transfer pricing rules apply to the acquisition or disposal (whether or not those rules actually give an adjustment) there can also be a further adjustment if necessary to ensure that the acquisition or disposal proceeds are recognised at full market value for tax purposes. It applies to acquisitions or disposals of trading stock made on or after 8 July 2015. Related changes are made by sections 41and 42.