Section 113 — Corporation Tax Act 2009: Addition of animals to herd

Addition of animals to herd 113 1 This section applies for the purpose of calculating the profits of the trade if an animal is added to the herd, unless it replaces another animal in the herd.

2 No deduction is allowed for the cost of the animal.

3 If, immediately before it was added to the herd, the animal was part of the farmer's trading stock, the balancing amount is brought into account as a receipt. 4 “ The balancing amount ” means—

a in the case of an animal bred by the farmer, the cost of breeding the animal and rearing it to maturity, and b in any other case, the sum of the initial cost of acquiring the animal and the cost (if any) incurred by the farmer in rearing the animal to maturity.