Income Tax (Trading and Other Income) Act 2005 section 225ZA

Application of Chapter 16ZA

Section 225ZA sets out the circumstances in which Chapter 16ZA applies, dealing with the tax treatment of compensation received by farmers when trading stock animals are compulsorily slaughtered under disease control orders.

• The chapter applies where a farm animal held as trading stock is 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
• The farmer must have received, or be entitled to receive, compensation for the slaughtered animal
• An animal meeting all three conditions is defined as a "relevant animal" for the purposes of this chapter