(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.
(1)This section applies if a farmer—
(a)keeps a production herd of a particular class, and
(b)ceases altogether to keep herds of that class for a period of at least 5 years.
(2)If the farmer keeps a production herd of that class after the end of that period—
(a)the period of account in which the farmer starts to keep the herd is treated as the first period of account in which the farmer keeps a production herd of that class, and
(b)any herd basis election previously made by the farmer in relation to production herds of that class ceases to have effect.
(1)This section applies if—
(a)the whole or a substantial part of a production herd kept by a farmer is slaughtered under a disease control order, and
(b)the circumstances of the slaughter are such that compensation is payable in respect of the animals slaughtered.
(2)The farmer may make a herd basis election in respect of the class of production herd involved in the slaughter as if the period of account —
(a)in which the compensation falls to be brought into account in calculating the profits of the trade, or
(b)in which it would (but for the election) fall to be so brought into account,
were the first period of account in which the farmer keeps a production herd of that class.
(3)An election made as a result of this section has effect for that period of account and every subsequent 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.
(4)In this section “disease control order” means an order made under the law relating to the diseases of animals by—
(a)central government,
(b)a devolved authority,
(c)a local authority, or
(d)another public authority.