½Û×ÓÊÓƵ

Under the law relating to animal diseases, a farmer may occasionally be compelled to slaughter some or all of their animals (as, for example, where there has been an outbreak of foot-and-mouth disease or bovine spongiform encephalopathy (BSE)) by order of a government department or local or public authority under a disease control order. In such cases they are entitled to compensation. Where this compensation is not payable in respect of animals forming part of a herd for which the herd basis election has been, or could be, made, the 'total compensation profit' may be excluded in computing the amount assessable to tax in respect of the basis period in which the slaughter took place. Such profits are instead included in three equal instalments in the assessable profits of each of the next three tax years¹, or, in the case of a company chargeable to corporation tax, the profits may be spread over the three accounting periods following that in which the slaughter took place². The provisions do not apply where profits are calculated