C1Part 3Trading income
Chapter 8Trade profits: herd basis rules
The herd basis rules
115Amount of receipt if old animal slaughtered under disease control order
1
This section applies for the purposes of section 114.
2
If—
a
the old animal was slaughtered under a disease control order, and
b
the new animal is of worse quality than the old animal,
the amount brought into account as a receipt under section 114 must not exceed the equivalent amount for the new animal.
3
For this purpose “a disease control order” means an order made under the law relating to the diseases of animals by—
a
central government,
b
a devolved authority,
c
a local authority, or
d
another public authority.
4
If, immediately before it was added to the herd, the new animal was part of the farmer's trading stock, “the equivalent amount for the new animal” means—
a
in the case of an animal bred by the farmer, the cost of breeding the animal and rearing it to maturity, and
b
in any other case, the sum of the initial cost of acquiring the animal and the cost (if any) incurred by the farmer in rearing the animal to maturity.
5
Otherwise “the equivalent amount for the new animal” means the cost of the new animal.
Pt. 3 modified (1.1.2010) by Northern Rock plc (Tax Consequences) Regulations 2009 (S.I. 2009/3227), regs. 1, 4(1)