Income Tax (Trading and Other Income) Act 2005 section 30

Animals kept for trade purposes

Section 30 sets out the basic rule for how animals and other living creatures kept for the purposes of a trade are treated for income tax purposes.

• Animals kept for trade purposes are generally treated as trading stock, similar to any other inventory held by a business
• Animals used mainly for working, public exhibition, or racing and competitive purposes are excluded from being treated as trading stock
• Where a herd basis election is in effect, animals forming part of that herd are not treated as trading stock
• The rules also apply to shares in animals, but do not extend to professions or vocations