"trading stock"
| (i) | anything produced, manufactured, constructed, assembled, purchased or in any other manner acquired by a taxpayer for the purposes of manufacture, sale or exchange by the taxpayer or on behalf of the taxpayer; |
| (ii) | anything the proceeds from the disposal of which forms or will form part of the taxpayer’s gross income, otherwise than— |
| (aa) | in terms of paragraph (j) or (m) of the definition of ‘gross income’; |
| (bb) | in terms of paragraph 14(1) of the First Schedule; or |
| (cc) | as a recovery or recoupment contemplated in section 8(4) which is included in gross income in terms of paragraph (n) of the definition of ‘gross income’; or; or |
| (iii) | any consumable stores and spare parts acquired by the taxpayer to be used or consumed in the course of the taxpayer’s trade; but |
| (i) | a foreign currency option contract; or |
| (ii) | a forward exchange contract, |
as defined in section 24I(1);
[Definition substituted by section 6(1)(zI) of the Taxation Laws Amendment Act, 2010 (Act No. 7 of 2010) - effective 2 November 2010]