Commentary

B5.160 Growing crops—general principles

Business tax
Business tax | Commentary

B5.160 Growing crops—general principles

Business tax | Commentary

Growing crops

B5.160 Growing crops—general principles

The nature of a farmer's stock has already been discussed in its application to farm animals, ie livestock (see B5.135–B5.139). The same principles may be applied to growing and harvested crops, which may be regarded as the equivalent of the 'work in progress' of a manufacturing business, and which therefore must be brought into the computation of taxable profits.

The general rule is that growing and harvested crops should be valued at their cost, or if lower their net realisable value. Costs which are directly attributable to buying, producing and growing the crops should

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