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SCHEDULES

SCHEDULE 19Management: other amendments

Part IIAmendments of Taxes Act 1988

Time limits for elections under Schedule 5

43(1)In sub-paragraph (3) of paragraph 2 of Schedule 5 to the Taxes Act 1988 (farming: election for the herd basis), for the words from “not later” to the end there shall be substituted the following paragraphs—

(a)in the case of an election by a person chargeable to income tax, not later than twelve months from the 31st January next following the qualifying year of assessment;

(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.

(2)In sub-paragraph (4) of that paragraph, for paragraphs (a) and (b) there shall be substituted the following paragraphs—

(a)in a case falling within sub-paragraph (3)(a) above, for the qualifying year of assessment and all subsequent years;

(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.

(3)After that sub-paragraph there shall be inserted the following sub-paragraphs—

(5)Where, in a case falling within sub-paragraph (3)(a) above, the commencement year immediately precedes the qualifying year of assessment, sub-paragraph (4)(a) above shall have effect as if the reference to the qualifying year of assessment were a reference to the commencement year.

(6)In this paragraph—

(4)In paragraph 6 of that Schedule, for sub-paragraphs (2) to (4) there shall be substituted the following sub-paragraphs—

(2)An election for the herd basis made by virtue of sub-paragraph (1) above shall only be valid if made—

(a)in the case of an election by a person chargeable to income tax, not later than twelve months from the 31st January next following the qualifying year of assessment;

(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)in a case falling within sub-paragraph (2)(a) above, for the qualifying year of assessment and all subsequent years;

(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—