Part 3Trading income
Chapter 3Trade profits: basic rules
50Animals kept for trade purposes
1
Animals or other living creatures kept for the purposes of a trade are treated as trading stock if they are not kept wholly or mainly—
a
for the work they do in connection with the carrying on of the trade,
b
for public exhibition, or
c
for racing or other competitive purposes.
2
But they are not treated as trading stock if they are part of a herd in relation to which a herd basis election has effect (see Chapter 8).
3
This section applies to shares in animals or other living creatures as it applies to the creatures themselves.