Income Tax (Trading and Other Income) Act 2005 section 126

Slaughter under disease control order

Section 126 allows a farmer to make a herd basis election outside the normal time limits when all or a substantial part of a production herd is slaughtered under a disease control order and compensation is payable.

• The section applies where all or a substantial part of a production herd is slaughtered under a disease control order and compensation is payable for the animals lost.
• The farmer may make a herd basis election for the relevant class of herd, treating the period of account in which the compensation is brought into account (or would have been, but for the election) as if it were the first period in which the farmer kept a herd of that class.
• Once made, the election applies from that period of account onwards for every subsequent period in which the farmer continues the trade and keeps a production herd of that class.
• A disease control order means any order made under animal disease legislation by central government, a devolved authority, a local authority, or another public authority.