116Sale of animals from herdU.K.
(1)This section applies for the purpose of calculating the profits of the trade if an animal is sold from the herd unless—
(a)it is replaced in the herd by another animal (see section 114), or
(b)it is sold as part of the sale of the whole or a substantial part of the herd that takes place all at once or over a period not longer than 12 months (see section 117).
(2)A profit arising from the sale is brought into account as a receipt.
(3)A deduction is allowed for a loss arising from the sale.
(4)The amount of the profit or loss is the difference between the sale proceeds of the animal and the deductible amount for the animal.
(5)“The deductible amount for the animal” means—
(a)in the case of an animal bred by the farmer, the cost of breeding the animal and rearing it to maturity,
(b)in the case of an animal acquired by the farmer for valuable consideration, the sum of the initial cost to the farmer of acquiring the animal and the cost (if any) incurred by the farmer in rearing the animal to maturity, and
(c)in the case of an animal acquired by the farmer but not for valuable consideration, the sum of the market value of the animal when acquired and the cost (if any) incurred by the farmer in rearing the animal to maturity.