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Home / Simons-Taxes /Business tax /Part B2 How are trade profits and losses calculated? /Division B2.2 Trade receipts /Other trade receipts / B2.212 Valuation of non-monetary receipts
Commentary

B2.212 Valuation of non-monetary receipts

Business tax

A taxable receipt arising from a transaction may take the form of money's worth instead of money, for example, in Californian Copper Syndicate Ltd property was sold for shares.1 and in John Emery and Sons ground annual created and retained by builders fell to be valued and to be regarded as part of the price paid by the purchasers of the houses which were subject to these charges.2. The figure to be brought into the calculation of trading profits is the realisable value of the asset received.

In Gold Coast Selection Trust3 the House of Lords considered a case where a trader in the course of his trade received an asset, other than cash, which was not immediately realisable. The taxpayer

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