Corporation Tax Act 2009 section 109

Election for application of herd basis rules

Section 109 allows a company that keeps or has kept a production herd to elect for special herd basis rules to apply instead of treating the animals as ordinary trading stock.

• A company (or a firm of which a company is a member) that keeps or has kept a production herd for trade purposes may make a herd basis election
• Where an election is in effect, animals in the production herd are not treated as trading stock but are instead dealt with under the herd basis rules in sections 112 to 121
• The rules apply to any company keeping a production herd for trade purposes, whether or not that trade is farming
• Time limits for making the election are set out in sections 122 to 124, and "production herd" is defined in section 110