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Posted Tue, 11 Oct 2022 16:11:21 GMT by Leaver
"How do I treat unsold stock in my final tax return after ceasing trading? Presumably I am entitled to tax relief on the cost value of this stock."
Posted Wed, 12 Oct 2022 08:21:57 GMT by HMRC Admin 17

Hi,
 
You may want to apply for a negligable value claim :

Negligible value claims and Income Tax losses on disposal of shares (Self Assessment helpsheet HS286)   .

Thank you.
Posted Thu, 13 Oct 2022 21:57:16 GMT by Leaver
Thanks Admin 17 - however I am not querying Tax losses on disposal of shares. My partnership (my wife and I) wasselling products retail after obtaining them from a wholesaler for whom we were a distributor. This small 'hobby' business petered out over the last few years and we ceased trading 5/4/2022. We are left with a relatively small amount of unsold stock which is now considered a 'write-off'. Can we claim the wholesale cost of this written-off stock in our final accounts to 5/4/22 so that it reflects in our final profit/ loss position. How exactly would we do this - is it an 'allowable expense'?
Posted Tue, 01 Nov 2022 08:22:58 GMT by HMRC Admin 19
Hi,

You can see guidance on stock valuation here:

BIM33450 - Stock: valuation on discontinuance of business: contents 

You can claim expenditure incurred for costs of stock, and you would have claimed the wholesale costs, when they were incurred.  

The guidance is about calculating the value of the stock left in ther business, which would need to be considered.  

If you require more information you will need to phone or write to HMRC.

Contact HMRC

Thank you.

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