SCHEDULES
SCHEDULE 5 TREATMENT OF FARM ANIMALS ETC. FOR PURPOSES OF CASE I OF SCHEDULE D
Farming: provisions applicable to special cases
6
1
Where the whole or a substantial part of a production herd kept by a farmer for the purposes of F3its farming is slaughtered by the order of any Ministry, government department or local or public authority under the law relating to the diseases of animals in such circumstances that compensation is payable in respect of it, an election for the herd basis thereupon made by the farmer in relation to that herd and any other production herds of the same class so kept by F4the farmer shall, subject to sub-paragraph (2) below, be valid notwithstanding that it is not made within the time required by paragraph 2(3) above.
F12
An election for the herd basis made by virtue of sub-paragraph (1) above shall only be valid if made—
a
F5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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.
3
An election for the herd basis made by virtue of sub-paragraph (1) above shall, notwithstanding paragraph 2(4) above, have effect—
a
F5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b
in a case falling within sub-paragraph (2)(b) above, for the qualifying period of account and all subsequent periods of account; and
c
in a case falling within sub-paragraph (2)(c) above, for the qualifying accounting period and all subsequent accounting periods.
4
In this paragraph—
F2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
“qualifying accounting period”, in relation to a person chargeable to corporation tax, means the first accounting period in which the compensation is relevant;
“qualifying period of account”, in relation to persons in partnership, means the first period of account in which the compensation is relevant;
F6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
For the purposes of this paragraph, compensation shall be deemed to be relevant in any period if, but only if, it falls (or would but for an election under this paragraph fall) to be taken into account as a trading receipt in computing the F7profits or losses of that or an earlier period.