Section 117 | Sale of whole or substantial part of herd

(1)This section applies for the purpose of calculating the profits of the trade if, either all at once or over a period not longer than 12 months, the herd or a substantial part of the herd is sold unless—

(a)section 118 applies (acquisition of new herd begun within 5 years of sale), or

(b)section 120 applies (replacement of part sold begun within 5 years of sale),

but paragraph (a) is subject to subsection (5) of section 118 (so far as that section provides for a case in which this section is to apply).

(2)A profit arising from the sale is not brought into account as a receipt.

(3)No deduction is allowed for a loss arising from the sale.