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9 1984

FINANCE ACT, 1984

CHAPTER IX

Amendment of Provisions in relation to Decrease in Stock Values other than in Trade of Farming

Decrease in stock values: corporation tax.

59. —(1) Subject to sections 60 and 65 , this section applies to any amount which, as respects an accounting period of a company ending after the 5th day of April, 1982, would, apart from this section, fall to be treated by virtue of section 31A (inserted by the Finance Act, 1976 ) of the Finance Act, 1975 , as a trading receipt of the company's trade for that accounting period.

(2) Notwithstanding any provision to the contrary other than section 60 , an amount to which this section applies in relation to a company shall not be treated as a trading receipt of the company's trade.

Limitation of application of section 59 .

60. —Subject to section 63 , section 59 shall not have effect as respects a trade of a company where the provisions of subsection (10) (inserted by the Finance Act, 1977 ) of section 31A of the Finance Act, 1975 , apply in relation to an accounting period of the company ending before the 6th day of April, 1988.

Decrease in stock values: income tax.

61. —(1) Subject to sections 62 and 65 , this section applies to any amount which, as respects an accounting period ending after the 5th day of April, 1982, would, apart from this section, fall to be treated by virtue of section 12 of the Finance Act, 1976 , as a trading receipt of a person's trade for that accounting period.

(2) Notwithstanding any provision to the contrary other than section 62 , an amount to which this section applies in relation to a person shall not be treated as a trading receipt of the person's trade.

Limitation of application of section 61 .

62. —Subject to section 63 , section 61 shall not have effect as respects a trade of a person where the provisions of subsection (8) (inserted by the Finance Act, 1977 ) of section 12 of the Finance Act, 1976 , apply in relation to an accounting period of the person ending before the 6th day of April, 1988.

Successions, etc., to trade.

63. Section 56 shall have effect with any necessary modifications for the purposes of this Chapter as it has effect for the purposes of Chapter VIII as if the references in subsection (4) of that section to section 50 or 52 were references respectively to section 60 or 62 .

Cesser of certain provisions of Finance Act, 1983.

64. —(1) Save as respects a trade of farming, the Tax Acts shall have effect, and shall be deemed always to have had effect, as if subsections (3) and (4) of section 26 of the Finance Act, 1983 , had not been enacted.

(2) Where, by virtue of either subsection (3) (b) or (4) (b) of the said section 26, any amount was, notwithstanding subsection (1) of this section, treated as a trading receipt for the purpose of any assessment to tax, there shall be made such assessments, additional assessments, reductions of assessments or repayments of tax as may in any case be required in order to give effect to the said subsection (1).

Limitation of application of Chapter IX .

65. —This Chapter shall not have effect as respects any amount which would, apart from this Chapter, fall to be treated by virtue of section 31A of the Finance Act, 1975 , or section 12 of the Finance Act, 1976 , as a trading receipt of a trade of farming.