Corporation Tax Act 2010 section 989

Agricultural societies

Section 989 exempts certain profits of agricultural societies from corporation tax, provided those profits arise from exhibitions or shows and are applied solely for the society's purposes.

• Profits from exhibitions or shows held for the purposes of an agricultural society are exempt from corporation tax, provided they are used solely for the society's purposes.
• An agricultural society is any society or institution established to promote the interests of agriculture, horticulture, forestry, or the breeding of any kind of animal.
• The exemption applies broadly to animal breeding of all types, not just traditional livestock — case law has confirmed this includes foxhound breeding and even caged birds.
• Both conditions must be met for the exemption to apply: the profits must come from an exhibition or show, and they must be applied exclusively to the society's own purposes.