Section EC 31 — Income Tax Act 2007: Enhanced production

EC 31 Enhanced production When this section applies (1) This section applies when a person who derives income from non-specified livestock— (a) enhances production in an income year by— (i) starting, or restarting, to derive income from non-specified livestock; or (ii) bringing land into production, or substantially increased production, for the purpose of deriving income from non-specified livestock; or (iii) acquiring additional land for the purpose of deriving income from non-specified livestock; and (b) as a result, in an income year or over the following 3 income years, buys more non-specified livestock that is not replacement livestock and that is valued at its standard value. Closing value (2) The closing value of the livestock bought is,— (a) for the income year in which the livestock was bought, its standard value plus two-thirds of the difference between the cost price of the livestock and the standard value: (b) for the following income year, its standard value plus one-third of the difference between the cost price of the livestock and the standard value: (c) for other income years, its standard value. Defined in this Act: cost price , income , income year , non-specified livestock , standard value , Compare: 2004 No 35 s EC 31