Section EC 39 — Income Tax Act 2007: First income year in breeding business

EC 39 First income year in breeding business Bloodstock to which this section applies (1) This section applies to bloodstock that is 2 years of age or older at the end of the first income year in which a person— (a) uses the bloodstock for breeding in their breeding business; or (b) forms the intention of using the bloodstock for breeding in their breeding business; or (c) buys the bloodstock, with the intention of using it for breeding in their breeding business. Special group of broodmares to which this section applies (2) This section also applies to a broodmare that is 2 years of age or older at the end of a person’s first income year after 1 April 2001 in which the person— (a) first uses the broodmare for breeding in their breeding business; or (b) first forms the intention of using the broodmare for breeding in their breeding business; or (c) buys the broodmare, with the intention of using it for breeding in their breeding business. Closing value (3) The closing value of the bloodstock at the end of the first income year is its cost price minus the reduction applying in that income year. Determination of reduction (4) The reduction that applies is determined under section EC 41 , EC 42 , EZ 5 , or EZ 6 (which relate to bloodstock). Defined in this Act: bloodstock , broodmare , business , cost price , income year , year , Compare: 2004 No 35 s EC 39