Section 124 — Corporation Tax Act 2009: Slaughter under disease control order

Slaughter under disease control order 124 1 This section applies if—

a the whole or a substantial part of a production herd kept by a farmer is slaughtered under a disease control order, and b the circumstances of the slaughter are such that compensation is payable in respect of the animals slaughtered.

2 The farmer may make a herd basis election in respect of the class of production herd involved in the slaughter as if the accounting period or (as the case may be) period of account —

a in which the compensation falls to be brought into account in calculating the profits of the trade, or b in which it would (but for the election) fall to be so brought into account, were the first accounting period or period of account in which the farmer keeps a production herd of that class.

3 An election made as a result of this section has effect for that accounting period or period of account and every subsequent accounting period or period of account in which the farmer—

a carries on the trade, and b keeps a production herd of the class to which the election relates.

4 In this section “ disease control order ” means an order made under the law relating to the diseases of animals by—

a central government, b a devolved authority, c a local authority, or d another public authority.