Income and Corporation Taxes Act 1988

2 (1) An election for the herd basis shall apply to all production herds of a particular class kept by the farmer making the election, including herds which [F1 the farmer] has ceased to keep before, or first begins to keep after, the making of the election.

(2) An election for the herd basis must be made in writing to the inspector, and must specify the class of herds to which it relates.

(3) Subject to paragraphs 6 and 12 below, an election for the herd basis made by any farmer shall be valid only if it is made [F2 —

(a) F3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) in the case of an election on behalf of persons in partnership, not later than twelve months from the 31st January next following the year of assessment in which the qualifying period of account ends; and

(c) in the case of an election by a person chargeable to corporation tax, not later than two years from the end of the qualifying accounting period.]

(4) An election for the herd basis made by any farmer shall be irrevocable and, subject to paragraph 6 below, shall have effect—

[F4 (a) F3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) in a case falling within sub-paragraph (3)(b) above, for the qualifying period of account and all subsequent periods of account; and

(c) in a case falling within sub-paragraph (3)(c) above, for the qualifying accounting period and all subsequent accounting periods.]

[F5 (5) F3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) In this paragraph—

• F6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• F7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• “qualifying accounting period”, in relation to a person chargeable to corporation tax, means the first accounting period during the whole or part of which it kept a production herd of the class in question;

• “qualifying period of account”, in relation to persons in partnership, means the first period of account during the whole or part of which those persons kept such a herd;

• F6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

Textual Amendments

F1 Words in Sch. 5 para. 2(1) substituted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 343(3)(a) (with Sch. 2)

F2 Words in Sch. 5 para. 2(3) substituted (with effect in accordance with s. 199(2) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 43(1)

F3 Sch. 5 para. 2(3)(a)(4)(a)(5) repealed (6.4.2005 with effect in accordance with s. 883(1) of the repealing Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 343(3)(b), Sch. 3 (with Sch. 2)

F4 Sch. 5 para. 2(4)(a)-(c) substituted for para. 2(4)(a)(b) (with effect in accordance with s. 199(2) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 43(2)

F5 Sch. 5 para. 2(5)(6) inserted (with effect in accordance with s. 199(2) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 43(3)

F6 Sch. 5 para. 2(6): definitions of "commencement year" and "qualifying year of assessment" repealed (6.4.2005 with effect in accordance with s. 883(1) of the repealing Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 343(3)(c), Sch. 3 (with Sch. 2)

F7 Sch. 5 para. 2(6): definition of "period of account" repealed (24.7.2002) by Finance Act 2002 (c. 23), Sch. 40 Pt. 3(16)