BIM55595 - Farming: herd basis: time limit for making election

Where the first chargeable period affected by the herd basis election is-

• in an Income Tax case, 1995-96 or earlier,
• in a Corporation Tax case, an accounting period ending before 1 July 1999.

the time limit for making the election is -

a) two years after the end of the first chargeable period for which the taxpayer-

• is chargeable under Case I, Schedule D (or would be charged if there were a profit), or
• is given relief under ICTA88/S380, or
• in the case of a company, is given relief under ICTA88/S393 (2) or ICTA88/S393A (1).

in respect of the farming trade, by reference to a period during which the taxpayer kept a production herd of the specified class; or

b) in a commencement case, two years after the first accounting date, if later.

In either case, the election takes effect from when the farmer first started keeping a production herd of the specified class.