Taxes Consolidation Act 1997 section 669

Supplementary provisions (Chapter 2)

Section 669 ensures that farm stock valuations are computed on a uniform basis and provides for cases in which accounting periods and periods of account do not coincide.

• The inspector may revise the opening or closing value of farming stock acquired other than in the normal course of a farming trade; closing stock must be valued on the same basis as opening stock.
• Where accounting periods and periods of account do not coincide, the increase in stock value is determined by reference to a "reference period" aligned with the period of account, and scaled to the length of the accounting period using the formula A × (C – O) ÷ N.
• Stock relief is not given for an accounting period in which the farming trade ceases, the farmer becomes non-resident, or the farming profits cease to be chargeable under Schedule D Case I.
• Where a farmer commences trading, the inspector may revise the value of opening stock, having regard to price movements and changes in the volume of trade during the accounting period, subject to appeal to the Appeal Commissioners.