The principles of stock valuation for Income Tax and Corporation
Tax purposes, are set out at
BIM33100 onwards, together with
practical guidance on reviewing the stock valuation in a set of
accounts. Those paragraphs apply equally to the valuation of
farming stocks and provide the context within which the following
paragraphs should be read.
BUSINESS ECONOMICS NOTE 19 (BEN19)/IR232.
In March 1993 the Department published, as BEN19, an
authoritative statement of the methods of valuing farming stock
which are acceptable to HMRC. It was prepared after consultation
with interested professional bodies and has been made widely
available. Farmers and their professional advisors who follow its
guidelines should be able to feel confident that their methods of
valuation will be accepted.
Business Economic notes are being withdrawn but BEN19 is
reproduced in full in help sheet IR232 and at
BIM55410 with additional
cross-references to internal publications added in italics.
For guidance on dealing with changes in the basis of
valuation resulting from the publication of BEN19, see
BIM55415.
