|
| |
|
(6) | A statutory instrument containing any regulations made by the Welsh |
| |
Ministers under this section is subject to annulment in pursuance of a |
| |
resolution of the National Assembly for Wales. |
| |
(7) | Regulations made under this section by the Department of Education— |
| |
(a) | are a statutory rule for the purposes of the Statutory Rules (Northern |
| 5 |
Ireland) Order 1979 (S.I. 1979/1573 (N.I. 12)), and |
| |
(b) | are subject to negative resolution within the meaning of section 41(6) of |
| |
the Interpretation Act (Northern Ireland) 1954 (c. 33 (N.I.)). |
| |
107 | Gifts of medical supplies and equipment |
| |
(1) | This section applies if— |
| 10 |
(a) | a company carrying on a trade makes a gift from trading stock of |
| |
medical supplies or medical equipment, |
| |
(b) | it makes the gift for humanitarian purposes, and |
| |
(c) | the supplies or equipment are for human use. |
| |
(2) | In calculating the profits of the trade, no amount is required to be brought into |
| 15 |
account as a receipt in consequence of the gift. |
| |
(3) | In calculating the profits of the trade, a deduction is allowed for any costs of |
| |
transportation, delivery or distribution incurred by the company in making the |
| |
| |
(4) | The deduction is allowed for the accounting period in which the costs are |
| 20 |
| |
(5) | The Treasury may by order provide that this section is not to have effect in |
| |
relation to medical supplies or medical equipment of any description specified |
| |
| |
(6) | This section needs to be read with section 108 (receipt of benefits by donor or |
| 25 |
| |
Benefits associated with gifts |
| |
108 | Receipt of benefits by donor or connected person |
| |
(1) | This section applies if a company carrying on a trade makes a gift in relation to |
| |
which relief is given under— |
| 30 |
| |
| |
(c) | section 63(2) of CAA 2001 (gifts to charities etc of plant or machinery |
| |
| |
| and the company, or a person connected with the company, receives a benefit |
| 35 |
which is in any way attributable to the making of the gift. |
| |
(2) | This section also applies if— |
| |
(a) | relief is given under section 107(3) for costs of transportation, delivery |
| |
or distribution incurred by a company carrying on a trade, and |
| |
(b) | the company, or a person connected with the company, receives a |
| 40 |
benefit which is in any way attributable to the company’s incurring of |
| |
| |
|
| |
|
| |
|
(3) | An amount equal to the value of the benefit— |
| |
(a) | is brought into account in calculating the profits of the trade, as a |
| |
receipt of the trade arising in the accounting period in which the benefit |
| |
| |
(b) | if the company has permanently ceased to carry on the trade before the |
| 5 |
benefit is received, is treated as a post-cessation receipt (see Chapter |
| |
| |
| |
Trade profits: herd basis rules |
| |
| 10 |
109 | Election for application of herd basis rules |
| |
(1) | A company, or a firm of which a company is a member, which keeps or has |
| |
kept a production herd for the purposes of a trade may make an election under |
| |
this Chapter (a “herd basis election”). |
| |
(2) | In calculating the profits of the trade, animals which are part of a production |
| 15 |
herd in relation to which a herd basis election has effect— |
| |
(a) | are not treated as trading stock (see section 50), but |
| |
(b) | are treated instead in accordance with sections 112 to 121 (“the herd |
| |
| |
(3) | This Chapter is expressed in terms of farmers but applies to any company, or |
| 20 |
firm of which a company is a member, which keeps or has kept a production |
| |
herd for the purposes of a trade, whether or not the trade is farming. |
| |
(4) | References in this Chapter to keeping a production herd are to keeping it for |
| |
the purposes of the trade. |
| |
110 | Meaning of “animal”, “herd”, “production herd” etc |
| 25 |
| |
(a) | “animal” means any animal or other living creature, |
| |
(b) | “herd” includes a flock and any other collection of animals (however |
| |
| |
(c) | “production herd” means, in relation to a farmer, a herd of animals of |
| 30 |
the same species (irrespective of breed) kept by the farmer wholly or |
| |
mainly for the products obtainable from the living animal which the |
| |
animals produce for the farmer to sell. |
| |
(2) | For this purpose “the products obtainable from the living animal” means— |
| |
(a) | the young of the animal, or |
| 35 |
(b) | any other product obtainable from the animal without slaughtering it. |
| |
(3) | For the purposes of this Chapter the general rule is that immature animals kept |
| |
in a production herd are not part of the herd. |
| |
(4) | There is an exception to this rule if— |
| |
|
| |
|
| |
|
(a) | the nature of the land on which the herd is kept means that animals |
| |
which die or cease to be part of the herd can be replaced only by |
| |
animals bred and reared on the land, |
| |
(b) | the immature animals in question are bred in the herd and are |
| |
maintained in the herd for the purpose of replacing other animals, and |
| 5 |
(c) | it is necessary to maintain the immature animals for that purpose. |
| |
(5) | In that case the immature animals are part of the herd for the purposes of this |
| |
Chapter, but only so far as they are required to prevent a fall in the numbers of |
| |
| |
(6) | References in this Chapter to an animal being added to a herd include |
| 10 |
references to an immature animal that is not part of the herd reaching maturity. |
| |
(7) | This Chapter applies— |
| |
(a) | in relation to animals kept singly as it applies in relation to herds, and |
| |
(b) | in relation to shares in animals as it applies in relation to animals |
| |
| 15 |
111 | Other interpretative provisions |
| |
(1) | This section applies for the purposes of this Chapter. |
| |
(2) | A production herd kept by a farmer is of the same class as another production |
| |
| |
(a) | the animals kept in both herds are of the same species (irrespective of |
| 20 |
| |
(b) | the products produced for the farmer to sell (for which the herds are |
| |
wholly or mainly kept) are of the same kinds in both herds. |
| |
(3) | References to the sale of an animal include references to its death or |
| |
| 25 |
(4) | References to the sale proceeds of an animal include references to— |
| |
(a) | money received from an insurer because of the animal’s death or |
| |
| |
(b) | compensation money received because of the animal’s death or |
| |
| 30 |
(c) | the sale proceeds of the animal’s carcass or any part of its carcass. |
| |
(5) | Female animals become mature— |
| |
(a) | in the case of laying birds, when they first lay, and |
| |
(b) | in any other case, when they produce their first young. |
| |
(6) | 20% or more of a herd is a substantial part of the herd, but a lesser percentage |
| 35 |
than 20% is capable of being a substantial part of the herd depending on the |
| |
circumstances of the case concerned. |
| |
| |
112 | Initial cost of herd and value of herd |
| |
(1) | In calculating the profits of the trade, no deduction is allowed for the initial cost |
| 40 |
| |
|
| |
|
| |
|
(2) | In calculating the profits of the trade, the value of the herd is not brought into |
| |
| |
113 | Addition of animals to herd |
| |
(1) | This section applies for the purpose of calculating the profits of the trade if an |
| |
animal is added to the herd, unless it replaces another animal in the herd. |
| 5 |
(2) | No deduction is allowed for the cost of the animal. |
| |
(3) | If, immediately before it was added to the herd, the animal was part of the |
| |
farmer’s trading stock, the balancing amount is brought into account as a |
| |
| |
(4) | “The balancing amount” means— |
| 10 |
(a) | in the case of an animal bred by the farmer, the cost of breeding the |
| |
animal and rearing it to maturity, and |
| |
(b) | in any other case, the sum of the initial cost of acquiring the animal and |
| |
the cost (if any) incurred by the farmer in rearing the animal to |
| |
| 15 |
114 | Replacement of animals in herd |
| |
(1) | This section applies for the purpose of calculating the profits of the trade if— |
| |
(a) | an animal (“the old animal”) is sold from the herd or otherwise ceases |
| |
to be part of the herd, and |
| |
(b) | it is replaced in the herd by another animal (“the new animal”). |
| 20 |
(2) | The sale proceeds (if any) of the old animal are brought into account as a |
| |
| |
(3) | But this needs to be read with— |
| |
(a) | section 115 (amount of receipt if old animal slaughtered under disease |
| |
| 25 |
(b) | section 118 (acquisition of new herd begun within 5 years of sale), and |
| |
(c) | section 120 (replacement of part sold begun within 5 years of sale). |
| |
(4) | Except so far as otherwise allowable, a deduction is allowed under this section |
| |
for the cost of the new animal. |
| |
(5) | But if the new animal is of better quality than the old animal, the amount of the |
| 30 |
deduction must not exceed the amount that it would have been necessary to |
| |
spend to replace the old animal with an animal of the same quality. |
| |
115 | Amount of receipt if old animal slaughtered under disease control order |
| |
(1) | This section applies for the purposes of section 114. |
| |
| 35 |
(a) | the old animal was slaughtered under a disease control order, and |
| |
(b) | the new animal is of worse quality than the old animal, |
| |
| the amount brought into account as a receipt under section 114 must not |
| |
exceed the equivalent amount for the new animal. |
| |
(3) | For this purpose “a disease control order” means an order made under the law |
| 40 |
relating to the diseases of animals by— |
| |
|
| |
|
| |
|
| |
(b) | a devolved authority, |
| |
(c) | a local authority, or |
| |
(d) | another public authority. |
| |
(4) | If, immediately before it was added to the herd, the new animal was part of the |
| 5 |
farmer’s trading stock, “the equivalent amount for the new animal” means— |
| |
(a) | in the case of an animal bred by the farmer, the cost of breeding the |
| |
animal and rearing it to maturity, and |
| |
(b) | in any other case, the sum of the initial cost of acquiring the animal and |
| |
the cost (if any) incurred by the farmer in rearing the animal to |
| 10 |
| |
(5) | Otherwise “the equivalent amount for the new animal” means the cost of the |
| |
| |
116 | Sale of animals from herd |
| |
(1) | This section applies for the purpose of calculating the profits of the trade if an |
| 15 |
animal is sold from the herd unless— |
| |
(a) | it is replaced in the herd by another animal (see section 114), or |
| |
(b) | it is sold as part of the sale of the whole or a substantial part of the herd |
| |
that takes place all at once or over a period not longer than 12 months |
| |
| 20 |
(2) | A profit arising from the sale is brought into account as a receipt. |
| |
(3) | A deduction is allowed for a loss arising from the sale. |
| |
(4) | The amount of the profit or loss is the difference between the sale proceeds of |
| |
the animal and the deductible amount for the animal. |
| |
(5) | “The deductible amount for the animal” means— |
| 25 |
(a) | in the case of an animal bred by the farmer, the cost of breeding the |
| |
animal and rearing it to maturity, |
| |
(b) | in the case of an animal acquired by the farmer for valuable |
| |
consideration, the sum of the initial cost to the farmer of acquiring the |
| |
animal and the cost (if any) incurred by the farmer in rearing the animal |
| 30 |
| |
(c) | in the case of an animal acquired by the farmer but not for valuable |
| |
consideration, the sum of the market value of the animal when |
| |
acquired and the cost (if any) incurred by the farmer in rearing the |
| |
| 35 |
117 | Sale of whole or substantial part of herd |
| |
(1) | This section applies for the purpose of calculating the profits of the trade if, |
| |
either all at once or over a period not longer than 12 months, the herd or a |
| |
substantial part of the herd is sold unless— |
| |
(a) | section 118 applies (acquisition of new herd begun within 5 years of |
| 40 |
| |
(b) | section 120 applies (replacement of part sold begun within 5 years of |
| |
| |
| but paragraph (a) is subject to subsection (5) of section 118 (so far as that section |
| |
provides for a case in which this section is to apply). |
| 45 |
|
| |
|
| |
|
(2) | A profit arising from the sale is not brought into account as a receipt. |
| |
(3) | No deduction is allowed for a loss arising from the sale. |
| |
118 | Acquisition of new herd begun within 5 years of sale |
| |
(1) | This section applies for the purpose of calculating the profits of the trade if— |
| |
(a) | either all at once or over a period not longer than 12 months, the herd |
| 5 |
(“the old herd”) is sold, and |
| |
(b) | the farmer acquires or starts to acquire another production herd of the |
| |
same class (“the new herd”) within 5 years of the sale. |
| |
(2) | Section 114 (replacement of animals in herd) applies as if a number of animals |
| |
| 10 |
(a) | the number of animals in the old herd, or |
| |
(b) | if smaller, the number of animals in the new herd, |
| |
| had been sold from the old herd and replaced in that herd (but see section 119 |
| |
(sale for reasons outside farmer’s control)). |
| |
(3) | For the purposes of section 114, the sale proceeds of an animal that is treated as |
| 15 |
a result of subsection (2) above as if it had been— |
| |
(a) | sold from the old herd, and |
| |
(b) | replaced in that herd by another animal (“the new animal”), |
| |
| are not brought into account as a receipt until the new animal is acquired. |
| |
| 20 |
(a) | the number of animals in the new herd is smaller than the number of |
| |
animals in the old herd, and |
| |
(b) | the difference is not substantial, |
| |
| section 116 (sale of animals from herd) applies as if a number of animals equal |
| |
to the difference had been sold from the old herd. |
| 25 |
(5) | If the number of animals in the new herd is smaller than the number of animals |
| |
in the old herd and the difference is substantial— |
| |
(a) | section 117 (sale of whole or substantial part of herd where replacement |
| |
not begun within 5 years), or |
| |
(b) | section 120 (sale of substantial part of herd where replacement begun |
| 30 |
| |
| applies as if a number of animals equal to the difference had been sold from the |
| |
| |
(6) | If the number of animals in the new herd is larger than the number of animals |
| |
in the old herd, section 113 (addition of animals to herd) applies as if a number |
| 35 |
of animals equal to the difference had been added to the old herd. |
| |
(7) | For the purposes of this section— |
| |
(a) | if the difference between the number of animals in the new herd and |
| |
the number of animals in the old herd is equal to 20% or more of the |
| |
number of animals in the old herd, the difference is substantial, but |
| 40 |
(b) | a lesser percentage than 20% is capable of being a substantial difference |
| |
depending on the circumstances of the case concerned. |
| |
|
| |
|