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

Right to make claim

Section 225ZB establishes the right of a farmer to claim tax relief in respect of compensation profits arising from the compulsory slaughter of animals, and defines how those profits are calculated.

• A farmer may make a claim, but only in respect of the total compensation profit for a period of account
• The total compensation profit is the sum of the profits from all relevant animals slaughtered in that period
• The profit per animal is the amount by which compensation exceeds the animal's book value, or the farmer's share of that amount if the trade is carried on in partnership
• A claim may be made before the final amount of compensation has been determined