Section 111 | Election for application of herd basis rules

(1)A person who keeps or has kept a production herd for the purposes of a trade may make an election under this Chapter (a “herd basis election”).

(2)In calculating the profits of the trade, animals which are part of a production herd in relation to which a herd basis election has effect—

(a)are not treated as trading stock (see section 30), but

(b)are treated instead in accordance with sections 114 to 123 (“the herd basis rules”).

(3)This Chapter is expressed in terms of farmers but applies to any person who keeps or has kept a production herd for the purposes of a trade, whether or not the trade is farming.

(4)References in this Chapter to keeping a production herd are to keeping it for the purposes of the trade.