Finance Act, 1980

Farming: provision relating to relief in respect of increase in stock values.

28.—(1) Where, in computing profits from the trade of farming, a deduction allowed by virtue of section 12 of the Finance Act, 1976 , has effect for the year 1980-81—

(a) section 31 (4) (a) of the Finance Act, 1975 (as applied by section 12 (2) (a) of the Finance Act, 1976 ) shall apply and have effect as if the reference to 20 per cent. were a reference to 10 per cent., and

(b) the said section 12 shall have effect as if subsection (2) (c) (inserted by the Finance Act, 1979 ) had not been enacted.

(2) Where a deduction falls to be made under section 31A (2) (inserted by the Finance Act, 1976 ) of the Finance Act, 1975 , in relation to the trade of farming, the said section 31A shall have effect as respects any accounting period which ends on or after the 6th day of April, 1979, as if—

(i) in subsection (4) (a) the reference to 20 per cent. were a reference to 10 per cent., and

(ii) paragraph (iii) (inserted by the Finance Act, 1979 ) of the proviso to the said subsection (4) (a) had not been enacted.

(3) (a) In this subsection—

“accounting period” has the same meaning as in section 12 of the Finance Act, 1976 ;

“farming” has the same meaning as in Chapter II of Part I of the Finance Act, 1974 ;

“person” has the same meaning as in section 12 of the Finance Act, 1976 ;

“stock to which this subsection applies” means livestock forming part of the trading stock of a trade of farming which is compulsorily disposed of under any statute relating to the eradication or control of diseases in livestock;

“trading stock” has the same meaning as in section 31 of the Finance Act, 1975 .

(b) Where—

(i) any stock to which this subsection applies is disposed of in an accounting period by a person carrying on a trade of farming, and

(ii) apart from the provisions of this subsection, the value of the trading stock of the said trade of farming at the beginning of the accounting period exceeds the value of the trading stock at the end of the accounting period, the person may elect, by notice in writing given to the inspector not later than one year after the end of the accounting period, that for the purpose of section 31 of and the third Schedule to the Finance Act, 1975 , and section 12 of the Finance Act, 1976

(I) the value of the trading stock of the trade of farming at the end of the accounting period, and

(II) the value of the said trading stock at the beginning of the immediately succeeding accounting period,

shall be computed as if the said stock to which this subsection applies had not been disposed of:

Provided that—

(A) this subsection shall not be construed as enabling the value of trading stock at the end of an accounting period or at the beginning of an immediately succeeding accounting period to exceed the value of the trading stock at the beginning of the first mentioned accounting period,

(B) nothing in this subsection shall affect the provisions of section 12 (8) (inserted by the Finance Act, 1977 ) of the Finance Act, 1976 , and

(C) this subsection shall not have effect in relation to any year of assessment prior to the year 1980-81.