Fur Farming (Compensation Scheme) (England) Order 2002

PART III— QUALIFYING INCOME LOSSES

Compensation for qualifying income losses

6.  The amount payable to an entitled applicant in respect of any qualifying income losses sustained by him shall be the amount produced by the formula P×4, where—

• P equals the average net trading profits of his qualifying business, calculated in accordance with paragraph 7 below and subject to any adjustment made in accordance with paragraph 8 to 10 below.

Calculation of average net trading profits

7.  For the purposes of calculating P in paragraph 6 above—

(a) subject to paragraph 8 to 10 below, the average net trading profits of an entitled applicant’s qualifying business shall be the amount produced by the formula T ÷ 5, where—

• T equals the total of the net trading profits of that qualifying business for each of the accounting periods comprising the reference period;

(b) for each accounting period, the net trading profits of the qualifying business shall be the net trading profits of that business assessed in accordance with UK GAAP;

(c) where, during an accounting period, a business carried on by an entitled applicant consisted partly of a qualifying business and partly of a non-qualifying business, the net trading profits of the qualifying business for that accounting period shall exclude any element of revenue or costs so far as it related to the non-qualifying business; and

(d) where, in any accounting period, any revenue or costs related partly to a qualifying business and partly to a non-qualifying business, such revenue or costs shall be apportioned between the qualifying business and the non-qualifying business in accordance with—

(i) UK GAAP; and

(ii) accepted costing practice.

Change of accounting date during reference period

8.  Where the accounting date for an entitled applicant’s qualifying business changed during the reference period and one or more accounting periods during the reference period were more or less than a year in length, the Minister shall, subject to paragraphs 9 and 10, calculate P for the purposes of paragraph 6 above on the basis of the average net trading profits of the qualifying business arrived at in accordance with paragraph 7 above but by using a reasonable estimate of what the net trading profits for any such accounting period would have been had it been a year in length instead of the actual net trading profits for that accounting period.

Accounting periods affected by illegal activity

9.  The Minister may, if she thinks fit in a particular case, exclude an accounting period from the calculation of the average net trading profits of a qualifying business in accordance with paragraph 7 above, where—

(a) she is satisfied that the net trading profits of the qualifying business for that accounting period have adversely been affected by the theft or unlawful release of mink, criminal damage or other illegal activity on the part of any person (whether or not that person’s identity is known); and

(b) she is satisfied that the illegal activity referred to in sub-paragraph (a) above was not carried out by an associate or an employee of the entitled applicant.

10.  Where an accounting period is excluded in accordance with paragraph 8 above, the Minister shall calculate P for the purposes of paragraph 6 above on the basis of the average net trading profits of the qualifying business arrived at in accordance with paragraph 7 above but by using a reasonable estimate of what the net trading profits for the excluded accounting period would have been but for the illegal activity on the basis of which it was excluded instead of the actual net trading profits for that accounting period.