Income Tax (Trading and Other Income) Act 2005

124 Herd basis elections U.K.

(1) A herd basis election must specify the class of production herd to which it relates.

(2) A herd basis election must be made—

(a) on or before the first anniversary of the normal self-assessment filing date for the tax year in which the first relevant period of account ends, or

(b) if that is the tax year in which the farmer starts to carry on the trade and the farmer is not a firm, on or before the second anniversary of the normal self-assessment filing date for that tax year.

(3) “The first relevant period of account” means the first period of account in which the farmer making the election keeps a production herd of the class to which the election relates (but see subsection (8)).

(4) A herd basis election cannot relate to more than one class of production herd, but separate elections may be made for different classes.

(5) A herd basis election is irrevocable.

(6) A herd basis election has effect in relation to all production herds of the class to which it relates, including any which the farmer—

(a) has ceased to keep before making the election, or

(b) first keeps after making the election.

(7) A herd basis election has effect for every 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.

(8) If the farmer is a firm and there is a change in the persons who are partners in the firm—

(a) any herd basis election made by the old firm ceases to have effect, and

(b) in relation to the new firm, “the first relevant period of account” means the first period of account in which the new firm keeps a production herd of the class to which the election relates.