Section 121 | Section 120: sale for reasons outside farmer's control

(1)This section applies for the purposes of section 116, as applied by section 120(2).

(2)If—

(a)the farmer was compelled to sell the old herd for reasons wholly outside the farmer's control, and

(b)an animal (“the new animal”) that is treated as a result of section 120(2) as if it replaced an animal sold (“the old animal”) is of worse quality than the old animal,

the amount brought into account as a receipt under section 116 must not exceed the equivalent amount for the new animal.

(3)If, immediately before it was added to the herd, the new animal was part of the farmer's trading stock, “the equivalent amount for the new animal” means—

(a)in the case of an animal bred by the farmer, the cost of breeding the animal and rearing it to maturity, and

(b)in any other case, the sum of the initial cost of acquiring the animal and the cost (if any) incurred by the farmer in rearing the animal to maturity.

(4)Otherwise “the equivalent amount for the new animal” means the cost of the new animal.