Commentary

B5.138 Valuation of livestock—'deemed' cost

Business tax
Business tax | Commentary

B5.138 Valuation of livestock—'deemed' cost

Business tax | Commentary

B5.138 Valuation of livestock—'deemed' cost

'Deemed' cost should not be adopted where it is possible to ascertain actual costs from the records, nor should it be used where it would not provide a reasonable estimate of cost (eg pedigree stock). Deemed cost should not be used for purchased animals if less than the original purchase price plus, if the animal were immature when purchased, the cost of rearing from the date of purchase to the valuation date or, if earlier, to maturity.

Deemed cost means a reasonable estimate of cost arrived at by taking a specific percentage of open market value.

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