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Stock appreciation
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Increase in the value of stock resulting from an increase in market prices. Stock appreciation is treated as a taxable profit in the U.K., although since 1975 the increase in stock values on which corporation tax would be payable has been limited to 15 per cent of trading profit. The introduction of stock relief became necessary following the increase in the general rate of inflation since 1973. It was important as a partial recognition of the need for inflation accounting.
Reference: The Penguin Dictionary of Economics, 3rd edt.
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