§ Mr. Timothy Smith
asked the Chancellor of the Exchequer what is the practice of the Inland Revenue Department in interpreting the expression "trading stock" in the Finance Act 1976, schedule 5, paragraph 29(1), in the light of the provision of paragraph 29(5) of that schedule that the stock figure shown in the accounts of a trade is to be used for the purpose of computing stock relief as well as for the purpose of computing trading profits in accordance with cases I and II of schedule D.
§ Mr. Ridley
The effect of these provisions is to require the Inland Revenue to disregard for stock relief items which are not brought into account in calculating the profits of the trade, profession or vocation. If my hon. Friend is aware of any difficulties in this respect I will be happy to look into them.