Section 124 | Slaughter under disease control order

(1)This section applies if—

(a)the whole or a substantial part of a production herd kept by a farmer is slaughtered under a disease control order, and

(b)the circumstances of the slaughter are such that compensation is payable in respect of the animals slaughtered.

(2)The farmer may make a herd basis election in respect of the class of production herd involved in the slaughter as if the accounting period or (as the case may be) period of account —

(a)in which the compensation falls to be brought into account in calculating the profits of the trade, or

(b)in which it would (but for the election) fall to be so brought into account,

were the first accounting period or period of account in which the farmer keeps a production herd of that class.

(3)An election made as a result of this section has effect for that accounting period or period of account and every subsequent accounting period or period of account in which the farmer—

(a)carries on the trade, and

(b)keeps a production herd of the class to which the election relates.

(4)In this section “disease control order” means an order made under the law relating to the diseases of animals by—

(a)central government,

(b)a devolved authority,

(c)a local authority, or

(d)another public authority.