Skip to content
Solved
SearchBrowse
Sign in

Contents

Official guidance
Business Income Manual

BIM55500 · Farming: herd basis

  • BIM55501 · Farming: overview of the herd basis
  • BIM55505 · Farming: operation of herd basis: main rules
  • BIM55515 · Which rule to apply
  • BIM55520 · What constitutes a replacement
  • BIM55525 · What constitutes substantial reduction
  • BIM55530 · Initial cost of herd and cost of additions
  • BIM55535 · Replacements
  • BIM55540 · Disposal of whole or substantial part of herd without replacement
  • BIM55545 · Acquisition of new animals following a major disposal
  • BIM55550 · Minor disposals from the herd without replacement
  • BIM55555 · Identification of animals disposed of
  • BIM55560 · Tax avoidance: transfers not at market price
  • BIM55565 · Who can elect
  • BIM55570 · What animals are covered
  • BIM55575 · Immature animals
  • BIM55580 · `heafted' flocks of hill sheep
  • BIM55585 · Elections for the herd basis
  • BIM55590 · Class of herd
  • BIM55600 · Time limit for making election
  • BIM55605 · New right of election: compulsory slaughter
  • BIM55610 · New partnerships and changes in partnerships
  • BIM55615 · Change in purpose for which a herd is kept
  • BIM55620 · Notice by HMRC for delivery of information
  • BIM55625 · Adjustment of assessments
  • BIM55630 · Continuing effect of an election
  • BIM55635 · Shares in animals
  • BIM55640 · Share farming and the herd basis
  1. Farming: herd basis: contents
  2. Farming: herd basis: what constitutes substantial reduction

BIM55525 | Farming: herd basis: what constitutes substantial reduction

From HM Revenue & Customs · Business Income Manual

S113(6) Income Tax (Trading and Other Income) Act 2005, S111(6) Corporation Tax Act 2009

A reduction may be regarded as substantial if it amounts to 20% or more of the animals in the herd, though a lesser percentage may be capable of being substantial in the circumstances of the particular case.

PreviousNext
PrivacyTerms