Commentary on Sections Overview Overview Section 118: Acquisition of new herd begun within 5 years of sale
457.This section sets out the rules that apply if, following the sale of the herd (either all at once or within 12 months), the farmer begins to acquire a new herd within five years. It is based on paragraph 3 of Schedule 5 to ICTA. The corresponding rule for income tax is in section 120 of ITTOIA.
458.Subsection (4) applies if the number of animals in the new herd is smaller than the number of animals in the old herd but the difference is not substantial. See Change 31 in Annex 1.
459.Subsection (7) clarifies what is meant by a “substantial difference”. See Change 30 in Annex 1.