Section EC 16 — Income Tax Act 2007: Valuation under herd scheme

EC 16 Valuation under herd scheme Closing value of herd livestock (1) The closing value of herd livestock in an income year is either its herd value for the income year or, if a herd value ratio is adopted, its herd value multiplied by its herd value ratio. Opening value of herd livestock (2) The opening value of herd livestock in an income year is determined under subsection (3) if a person— (a) has valued the livestock under the herd scheme in the previous income year; and (b) has the livestock on hand at the start of the income year; and (c) has not chosen to value the livestock by a different method for the income year. Determining opening value (3) The opening value of herd livestock in an income year is either its herd value for the income year or, if the person has adopted a herd value ratio, its herd value for the income year multiplied by its herd value ratio for the previous income year. This subsection overrides section DB 49(3) (Adjustment for opening values of trading stock, livestock, and excepted financial arrangements). Defined in this Act: herd livestock , herd scheme , herd value , herd value ratio , income year , Compare: 2004 No 35 s EC 16 Section EC 16(3): amended (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 22(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).