Corporation Tax Act 2009 section 115

Amount of receipt if old animal slaughtered under disease control order

Section 115 limits the taxable receipt when a herd animal slaughtered under a disease control order is replaced by one of worse quality.

• When an animal is slaughtered under a disease control order and replaced by one of worse quality, the taxable receipt is capped at the "equivalent amount" for the new animal
• A disease control order is one made under animal disease legislation by central government, a devolved authority, a local authority, or another public authority
• If the replacement animal came from the farmer's own trading stock, the equivalent amount is the cost of breeding and rearing it to maturity (if home-bred) or the purchase cost plus any rearing costs (if bought in)
• If the replacement animal was not part of the farmer's trading stock, the equivalent amount is simply the cost of acquiring the new animal