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

Book value

Section 225ZC defines how the "book value" of an animal is determined for the purposes of calculating profits when animals are compulsorily slaughtered.

• The book value of an animal is normally the value shown in the accounts at the start of the accounting period in which it was slaughtered.
• If no value appears in the accounts because the animal was born and slaughtered in the same period (and did not become trading stock by any other means), the book value is 75% of the compensation payable for that animal.
• Where the animal entered trading stock via a transfer from the trader's own use or an acquisition outside the course of trade, the book value is the deemed cost under the relevant trading stock rules (sections 172C or 172E).
• In all other cases where no value is shown in the accounts, the book value is simply the cost of acquiring the animal for the purposes of the trade.