Section FB 15 — Income Tax Act 2007: Specified livestock valued under herd scheme

FB 15 Specified livestock valued under herd scheme When this section applies (1) This section applies for the purposes of sections EC 8 to EC 26 (which relate to the valuation of specified livestock) when— (a) specified livestock is transferred on a settlement of relationship property and the transferor— (i) used the livestock in the carrying on of a business; and (ii) held the livestock at the start of the year of transfer; and (b) the value of the livestock is determined under the herd scheme— (i) by the transferor at the end of the income year before the year of transfer; and (ii) by the transferee at the end of the year of transfer. Transfer at national average market value (2) The transfer is treated as a disposal and acquisition for an amount equal to the national average market value of the livestock for the year of transfer. If the transferor adopted a herd value ratio, the amount is equal to the national average market value of the livestock for the year of transfer multiplied by the herd value ratio applying in the income year before the year of transfer. Defined in this Act: amount , business , herd scheme , herd value ratio , income year , market value , national average market value , settlement of relationship property , specified livestock , year of transfer , Compare: 2004 No 35 s FF 9