Part 2Trading income
Chapter 8Trade profits: herd basis rules
Elections
124Herd 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
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.