Corporation Tax Act 2009

122 Herd basis elections

(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) not later than two years after the end of the first relevant accounting period (if the farmer is not a firm), or

(b) 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 (if the farmer is a firm).

(3) For this purpose—

(a) “the first relevant accounting period” means the first accounting period in which the farmer making the election keeps a production herd of the class to which the election relates, and

(b) “the first relevant period of account” means the first period of account in which the firm 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—

(a) for every accounting period in which the farmer carries on the trade and keeps a production herd of the class to which the election relates (if the farmer is not a firm), or

(b) for every period of account in which the farmer carries on the trade and keeps a production herd of the class to which the election relates (if the farmer is a firm).

(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.