Corporation Tax Act 2009 section 127B

Right to make claim

Section 127B establishes the right of a farm company to claim relief in respect of compensation profits arising from the compulsory slaughter of animals during an accounting period.

• A farm company may make a claim under this section, but only in respect of the total compensation profit for an accounting period
• The total compensation profit is calculated as the sum of individual profits on all relevant animals slaughtered during the accounting period
• The profit on each relevant animal is the excess of compensation received over the animal's book value, or the farm company's share of that excess if the trade is carried on in partnership
• A claim may be submitted before the final amount of compensation has been determined