Commentary on Sections Overview Overview Section 195: Transfer of trading stock
729.This section excludes from the charge on post-cessation receipts sums arising from the transfer of stock. It is based on sections 103, 104 and 110 of ICTA. The corresponding rule for income tax is in section 252 of ITTOIA.
730.Subsection (1) makes explicit the general rule that there is no tax charge on a post-cessation receipt arising from trading stock.
731.The policy is that stock should be valued at cessation in accordance with the rules in Chapter 11 of this Part. Once that has been done there is no need to charge tax on any sums arising from the disposal or realisation of stock.