Paragraph 1

United Kingdom

(1)

M1Subject to the provisions of this Schedule, in computing F1profitsF2chargeable to corporation tax under Case I of Schedule D, animals kept by a farmer for the purposes of F3its farming shall be treated as trading stock.

(2)

Animals forming part of production herds with respect to which an election under paragraph 2 below has effect shall not be so treated, but shall be treated instead in accordance with the rules set out in paragraph 3 below.

(3)

An election under paragraph 2 below is referred to in this Schedule as “an election for the herd basis”.

Annotations

Textual amendments

F1: Words in Sch. 5 para. 1(1) substituted (31.7.1998) by Finance Act 1998 (c. 36), s. 46(3)(a)(b), Sch. 7 para. 1
F2: Words in Sch. 5 para. 1(1) inserted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 343(2)(a) (with Sch. 2)
F3: Word in Sch. 5 para. 1(1) substituted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 343(2)(b) (with Sch. 2)

Marginal citations

M1: Source—1970 Sch.6; 1973 s.35; 1984 s.48(6)-(9)

Notes on Schedule 5

Textual amendments

F1: Sch. 5 repealed (1.4.2009 with effect in accordance with s. 1329(1) of the repealing Act) by Corporation Tax Act 2009 (c. 4), Sch. 1 para. 280, Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)