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    Income tax - Trading income - Special trades - Farmers - Herd basis - 22170

    As a general rule, farm animals are treated as stock, so any related expenditure or receipts will have a direct effect on the trading profits for each period. In addition stock must be revalued...

    Herd basis election

    Herd basis electionIf you keep animals for production purposes, you might be able to take advantage of the "herd basis" to simplify calculating your taxable profits.ProductionFarm animals are...

    When is a herd basis election beneficial?

    If you have clients with production herds, e.g. farmers with dairy cattle, they can elect to use special rules that could result in big tax savings. When will this be most efficient, and what...