Corporation Tax Act 2009 section 122

Herd basis elections

Section 122 sets out the rules governing how and when a farmer makes a herd basis election, including the time limits, scope, and what happens when partners in a farming firm change.

• A herd basis election must specify a single class of production herd; separate elections are needed for each class, and each election is irrevocable once made.
• The deadline for making the election is two years after the end of the first accounting period in which the farmer keeps that class of herd (for a company), or one year after the normal self-assessment filing date for the tax year in which the first relevant period of account ends (for a firm).
• The election covers all production herds of the specified class, including any the farmer kept before making the election or first keeps afterwards, and it has effect for every accounting period or period of account in which the farmer carries on the trade and keeps that class of herd.
• Where the farmer is a firm and there is a change in partners, the old firm's election ceases to have effect and the new firm must make its own election, with its own first relevant period of account running from when the new firm first keeps a herd of that class.