Finance Act, 1984
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Opening stock of a new business. |
54.—Where a person (hereafter in this section referred to as “the first-mentioned person”) carries on in an accounting period a trade in respect of which a deduction under section 49 or 51 is claimed and, immediately before the beginning of that accounting period, the trade was not being carried on by him, then, unless— | |
(a) the first-mentioned person acquired the initial trading stock of the qualifying trade on a sale or transfer from another person on that person's ceasing to carry on the trade, and | ||
(b) the stock so acquired is, or is included in, the first-mentioned person's trading stock as valued at the beginning of the accounting period, | ||
the first-mentioned person shall be treated for the purposes of this Chapter as having at the beginning of the accounting period trading stock of such value as appears to the inspector (or, on appeal, to the Appeal Commissioners) to be reasonable and just having regard to all the relevant circumstances of the case and in particular to— | ||
(i) movements during the accounting period in the costs of items of a kind comprised in the first-mentioned person's trading stock during the period, and | ||
(ii) changes during that period in the volume of the trade carried on by him. |