Corporation Tax Act 2009 section 127A

Application of Chapter 8A

Section 127A sets out the conditions under which Chapter 8A applies, dealing with the tax treatment of farming animals slaughtered under disease control orders where compensation is received.

• The chapter applies when a farming animal treated as trading stock is compulsorily slaughtered under a disease control order
• The animal must not be part of a production herd for which a herd basis election could be made under section 124
• The farm company must receive or expect to receive compensation for the slaughtered animal
• An animal meeting all three conditions is defined as a "relevant animal" for the purposes of the chapter