BIM33035 - Stock: meaning of: a statutory definition of trading stock

Trading stock is defined in ITTOIA/S174 and CTA09/S163.. It is given a wide meaning. When considering whether these sections apply the trading stock must fall within this definition. In deciding what is trading stock generally the case law should be considered.

The definition in both ITTOIA and CTA09 include trading stock which would be sold in the ordinary course of the trade, and any stock which is still being manufactured or otherwise being made ready for sale. It also includes raw materials and consumables, that is materials that are used up in the production process, and any items that would be treated as work in progress. It also includes any services, article or material that would be work in progress of a profession or vocation.