Section EC 35 — Income Tax Act 2007: Livestock reaching national average market value and livestock no longer used for breeding

EC 35 Livestock reaching national average market value and livestock no longer used for breeding Livestock at or less than national average market value (1) This section applies to a person’s high-priced livestock whose value at the end of an income year is equal to or less than the national average market value for the class to which the livestock belongs. Livestock no longer used for breeding (2) This section also applies to high-priced livestock that, in an income year, a person— (a) does not expect to use for breeding for that or any later income year; and (b) does not intend to dispose of to any other person to use for breeding. Closing value (3) The closing value of the high-priced livestock at the end of the income year is determined as follows: (a) when the person values any specified livestock of that type under the herd scheme for the income year, the value of the animal under the herd scheme; and (b) when the person values all specified livestock of that type that is older than 1 year under the national standard cost scheme or the cost price method, the national average market value for the income year of livestock of the class to which the animal belongs; and (c) when the person values all specified livestock of that type that is older than 1 year under the market value method or the replacement price method, the market value or replacement price of the animal at the end of the income year. Valuation in later income years (4) In later income years, the animal that was high-priced livestock is treated as the person’s specified livestock and is valued under the valuation method the person chooses for specified livestock of the type to which the animal belongs. Entry into herd scheme in later income years (5) This subsection applies if, in a later income year ( year A ), the person values any specified livestock of the same type as the animal under the herd scheme and, in the next year, values the animal under the herd scheme. The animal is treated as if it were valued under the herd scheme at the end of year A. Defined in this Act: class , cost price , herd scheme , high-priced livestock , income year , national average market value , national standard cost scheme , specified livestock , type , year , Compare: 2004 No 35 s EC 35