Part 2Trading income
Chapter 8Trade profits: herd basis rules
Introduction
113Other interpretative provisions
1
This section applies for the purposes of this Chapter.
2
A production herd kept by a farmer is of the same class as another production herd only if—
a
the animals kept in both herds are of the same species (irrespective of breed), and
b
the products produced for the farmer to sell (for which the herds are wholly or mainly kept) are of the same kinds in both herds.
3
References to the sale of an animal include references to its death or destruction.
4
References to the sale proceeds of an animal include references to—
a
money received from an insurer because of the animal's death or destruction,
b
compensation money received because of the animal's death or destruction, and
c
the sale proceeds of the animal's carcass or any part of its carcass.
5
Female animals become mature—
a
in the case of laying birds, when they first lay, and
b
in any other case, when they produce their first young.
6
20% or more of a herd is a substantial part of the herd, but a lesser percentage than 20% is capable of being a substantial part of the herd depending on the circumstances of the case concerned.