»Ê¹ÚÌåÓýapp

S124, S878(3) Income Tax (Trading and Other Income) Act 2005, S122, S1315 Corporation Tax Act 2009

An election for the herd basis:

• must be made in writing
• must specify the class of herds to which it relates (see BIM55590)
• must be made within the statutory time limit (see BIM55600 - BIM55605)
• normally takes effect from when the farmer first starting keeping a production herd of the specified class
• is irrevocable (see BIM55630).

»Ê¹ÚÌåÓýappre is no special form for making a herd basis election, nor is there a requirement that the election be signed by the farmer. Accounts or computations which clearly show that the herd basis is being used for a particular class of animals may be regarded as an election in respect of herds of that class.

»Ê¹ÚÌåÓýapp legislation, although expressed in terms of farmers, applies to any person who keeps a production herd for the purposes of a trade even though that trade may not be farming, see BIM55565.