Commentary

B5.151 Nature of herd

Business tax
Business tax | Commentary

B5.151 Nature of herd

Business tax | Commentary

B5.151 Nature of herd

Farm animals have the characteristics of machines in that they convert grass into milk or wool. If a farmer who does not calculate his profits on the cash basis from 2013/14 elects (see B5.152) for the herd basis to apply to a production herd (see below), the animals in that herd form part of his fixed capital for tax purposes in the same way as plant and machinery; this does not mean that the herd can qualify for capital allowances1. It cannot apply to working horses or working dogs; or to animals kept for public exhibition

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial