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EB 20: Replacement price for low-turnover traders
or “How low-turnover traders can value their closing stock at replacement price”
You could also call this:

“Low-turnover traders can value closing stock at market selling price”

If you are a low-turnover trader, you can choose to value your closing stock at its market selling value. This means you can use either a higher or lower value than what it cost you. However, if you decide to use a value higher than cost, you need to keep using this method every year.

The rules in section EB 11(2) to (4) also apply to you if you are a low-turnover trader.

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Next up: EB 22: Valuing closing stock consistently for low-turnover traders

or “Small businesses must value leftover stock consistently each year for tax purposes”
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Part E Timing and quantifying rules
Valuation of trading stock (including dealer’s livestock)

EB 21Market selling value for low-turnover traders

  1. A low-turnover trader may determine the value of their closing stock at its market selling value, whether that value is higher or lower than cost. However, if the value is higher than cost, the trader must be consistent from 1 income year to the next in their use of market selling value to determine the value of closing stock.

  2. Section EB 11(2) to (4) applies to a low-turnover trader.

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