# Income and Corporation Taxes Act 1988, Paragraph 1

Extent: E+W+S+N.I.

(1) Subject to the provisions of this Schedule, in computing profitschargeable to corporation tax under Case I of Schedule D, animals kept by a farmer for the purposes of its 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”.

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Source: https://www.legislation.gov.uk/ukpga/1988/1/schedule/5/paragraph/1 (the official version)
Page: https://openlegislation.uk/income-and-corporation-taxes-act-1988/schedule-5/paragraph-1
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.