C1Part 3Trading income
Chapter 8Trade profits: herd basis rules
Elections
124Slaughter under disease control order
1
This section applies if—
a
the whole or a substantial part of a production herd kept by a farmer is slaughtered under a disease control order, and
b
the circumstances of the slaughter are such that compensation is payable in respect of the animals slaughtered.
2
The farmer may make a herd basis election in respect of the class of production herd involved in the slaughter as if the accounting period or (as the case may be) period of account —
a
in which the compensation falls to be brought into account in calculating the profits of the trade, or
b
in which it would (but for the election) fall to be so brought into account,
were the first accounting period or period of account in which the farmer keeps a production herd of that class.
3
An election made as a result of this section has effect for that accounting period or period of account and every subsequent accounting period or period of account in which the farmer—
a
carries on the trade, and
b
keeps a production herd of the class to which the election relates.
4
In this section “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.
Pt. 3 modified (1.1.2010) by Northern Rock plc (Tax Consequences) Regulations 2009 (S.I. 2009/3227), regs. 1, 4(1)