Taxes Consolidation Act 1997 section 666

Deduction for increase in stock values

Section 666 provides for stock relief, that is, a deduction from farming trading income equal to 25 per cent of the increase in the value of trading stock in an accounting period.

• A person carrying on the trade of farming may claim a deduction of 25 per cent of the increase in the value of trading stock over an accounting period, treated as a trading expense of that period.
• For companies, the deduction cannot exceed trading income after accounting for unrelieved losses, terminal losses, and capital allowances; for individuals, the deduction cannot exceed trading income for the relevant year; in either case, stock relief may not create or augment a loss.
• Where stock relief is claimed, certain capital allowances and trading losses from other periods may not be carried forward or back into the period in which the relief applies.
• The relief must be claimed in writing by the return filing date; it applies to partnerships and is available for accounting periods ending on or before 31 December 2027 (companies) or tax years up to and including 2027 (individuals).