Corporation Tax Act 2009 section 111

Other interpretative provisions

Section 111 provides key definitions and interpretative rules used throughout the herd basis chapter, covering herd classification, the meaning of "sale" and "sale proceeds", animal maturity, and what counts as a substantial part of a herd.

• Two production herds are of the same class only if they contain the same species of animal and are kept for the same type of product — so a cow herd kept for milk and a goat herd kept for milk are different classes, and two cow herds kept for different products (e.g. milk versus calves) are also different classes.
• References to the "sale" of an animal include its death or destruction, and "sale proceeds" include insurance payouts, compensation received, and any money from selling the carcass or parts of it.
• Female animals are treated as mature when laying birds first lay an egg, or in all other cases when they produce their first young.
• 20% or more of a herd is always regarded as a substantial part of the herd, but a proportion below 20% may still qualify as substantial depending on the particular circumstances.