Taxes Consolidation Act 1997 Schedule 17 paragraph 4

Financial assets

Paragraph 4 sets out how financial trading stock is valued on a bank reorganisation and how the transfer of such assets to the successor is treated for tax purposes.

• Financial trading stock means assets of the bank that would constitute trading stock for the purposes of section 89.
• On a reorganisation, financial trading stock is valued at its cost to the bank being reorganised.
• The transfer of financial trading stock to the successor in the course of a reorganisation is not treated as a disposal by the bank.
• When the successor later disposes of the assets, the profit or loss is calculated by reference to the original cost to the bank.