Section 121 — Corporation Tax Act 2009: Section 120: sale for reasons outside farmer's control

Section 120: sale for reasons outside farmer's control 121 1 This section applies for the purposes of section 114, as applied by section 120(2).

2 If—

a the farmer was compelled to sell the part of the herd for reasons wholly outside the farmer's control, and b an animal (“the new animal”) that replaces an animal sold (“the old animal”) is of worse quality than the old animal, the amount brought into account as a receipt under section 114 must not exceed the equivalent amount for the new animal.

3 If, immediately before it was added to the herd, the new animal was part of the farmer's trading stock, “ the equivalent amount for the new animal ” 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.

4 Otherwise “ the equivalent amount for the new animal ” means the cost of the new animal.