Section 122 — Corporation Tax Act 2009: Herd basis elections

Herd basis elections 122 1 A herd basis election must specify the class of production herd to which it relates.

2 A herd basis election must be made—

a not later than two years after the end of the first relevant accounting period (if the farmer is not a firm), or b on or before the first anniversary of the normal self-assessment filing date for the tax year in which the first relevant period of account ends (if the farmer is a firm).

3 For this purpose—

a “ the first relevant accounting period ” means the first accounting period in which the farmer making the election keeps a production herd of the class to which the election relates, and b “ the first relevant period of account ” means the first period of account in which the firm making the election keeps a production herd of the class to which the election relates (but see subsection (8)).

4 A herd basis election cannot relate to more than one class of production herd, but separate elections may be made for different classes.

5 A herd basis election is irrevocable.

6 A herd basis election has effect in relation to all production herds of the class to which it relates, including any which the farmer—

a has ceased to keep before making the election, or b first keeps after making the election.

7 A herd basis election has effect—

a for every accounting period in which the farmer carries on the trade and keeps a production herd of the class to which the election relates (if the farmer is not a firm), or b for every period of account in which the farmer carries on the trade and keeps a production herd of the class to which the election relates (if the farmer is a firm).

8 If the farmer is a firm and there is a change in the persons who are partners in the firm—

a any herd basis election made by the old firm ceases to have effect, and b in relation to the new firm, “ the first relevant period of account ” means the first period of account in which the new firm keeps a production herd of the class to which the election relates.