What does section 124 of the Corporation Tax Act 2009 allow a farmer to do after compulsory slaughter?

Section 124 allows a farmer whose production herd is slaughtered under a disease control order to make a late herd basis election outside the normal time limits. The farmer is treated as if the compensation period were the first period of keeping that class of herd, effectively resetting the election deadline and providing a fresh opportunity to elect.

How does section 124 reset the herd basis election deadline under United Kingdom corporation tax law?

Section 124 treats the accounting period in which the compensation falls to be recognised in trading profits as if it were the very first period in which the farmer kept a production herd of that class. This resets the clock, allowing the farmer to elect for the herd basis as though starting afresh, even if the original deadline passed years earlier.

What qualifies as a disease control order for the purposes of section 124 CTA 2009?

A disease control order is any order made under animal disease legislation by central government, a devolved authority, a local authority, or any other public authority. This broad definition ensures section 124 applies regardless of which tier of government issues the order requiring the compulsory slaughter of the production herd.

How long does a herd basis election made under section 124 remain in effect?

Once made under section 124, the herd basis election applies from the compensation period onwards and continues permanently for every subsequent period in which the farmer carries on the trade and keeps a production herd of the relevant class. It is an ongoing election for that herd class, not a one-off adjustment.

Corporation Tax Act 2009 section 124

Slaughter under disease control order

Section 124 allows a farmer whose production herd is slaughtered under a disease control order to make a late herd basis election outside the normal time limits.

Where all or a substantial part of a production herd is slaughtered under a disease control order and compensation is payable, the farmer may make a herd basis election as if the period in which the compensation is recognised were the first period of keeping that class of herd
This effectively gives the farmer a fresh opportunity to elect for the herd basis even though the normal deadline has passed
The election, once made, applies from that period onwards for as long as the farmer continues the trade and keeps a production herd of the same class
A disease control order is any order made under animal disease legislation by central government, a devolved authority, a local authority, or another public authority

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