Income Tax Act 2007

650 Trading stock appropriations etc

(1) Subsection (2) applies if a person—

(a) acquires securities otherwise than as trading stock of a trade the person carries on, and

(b) appropriates the securities as trading stock for the purposes of such a trade (whether on the start of the trade or otherwise).

(2) The person is treated for the purposes of this Chapter as transferring the securities otherwise than in the course of the trade, and re-acquiring them in the course of the trade, on the day of appropriation.

(3) Subsection (4) applies if securities—

(a) form part of the trading stock of a person’s trade, and

(b) are appropriated by the person for any other purpose.

(4) The person is treated for the purposes of this Chapter as transferring the securities in the course of the trade, and re-acquiring them otherwise than in the course of the trade, on the day of appropriation.

(5) Subsection (6) applies if securities—

(a) form part of the trading stock of a person’s trade, and

(b) are retained by the person on ceasing to carry on the trade.

(6) The person is treated for the purposes of this Chapter as transferring the securities in the course of the trade, and re-acquiring them otherwise than in the course of the trade, on the day of cessation.

(7) See sections 623(2) to (4) and 624(2) to (4) for cases where securities are treated as transferred with or without accrued interest where this section applies.