Corporation Tax Act 2009 section 50

Animals kept for trade purposes

Section 50 sets out when animals or other living creatures kept for the purposes of a trade are treated as trading stock for corporation tax purposes.

• Animals kept for trade purposes are generally treated as trading stock, unless they are kept mainly for work, public exhibition, or racing and competitive purposes.
• Animals that are part of a herd subject to a herd basis election under Chapter 8 are not treated as trading stock.
• The rule applies equally to shares in animals as it does to whole animals.
• This is the basic corporation tax rule for animals; the corresponding income tax rule is found separately in the Income Tax (Trading and Other Income) Act.