Commentary on Sections Overview Overview Section 118: Sale of animals from herd
483.This section sets out the rules that apply if an animal is sold from the herd and not replaced. It is based on paragraph 3(10) of Schedule 5 to ICTA.
484.Subsection (1) identifies the scope of the section. References to the sale of an animal include references to its death or destruction. See section 113(3). An explanation of what is meant by “substantial part of the herd” is given in section 113(6).
485.Subsections (2) and (3) explain that profits are included as trade receipts and losses are allowed as trade deductions.
486.Subsection (4) sets out how to calculate the profit or loss. The definition of “deductible amount for the animal” is in subsection (5).