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Commentary

B5.137 Livestock bred on the farm

Business tax

MRC have explained in detail the basis on which, in their view, farm stock should be valued1. Clearly, the basis explained by HMRC would not affect individual rights of appeal, nor is it invariably applied, particularly if the facts of the case require a different approach.

In general, it is stated that farm stock valuations at cost should include the costs directly attributable to producing or rearing the stock in question. It is preferable also to include, except in certain cases, a reasonable proportion of the costs

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