Commentary on Sections Overview Overview Section 111: Other interpretative provisions
437.This section provides further definitions. It is based on paragraphs 3, 8 and 9 of Schedule 5 to ICTA. The corresponding rules for income tax are section 113 of ITTOIA.
438.Subsection (2)(a) applies if production herds of animals of different species are kept for the same product; for example, a herd of cows and a herd of goats both kept for milk production. Each herd satisfies the definition of production herd. Subsection (2)(a) prevents them being treated as of the same class.
439.Subsection (2)(b) prevents animals of the same species being treated as of the same class if they are kept for different products; for example, one herd of cows kept for milk production and another herd of cows kept for its calves.
440.Subsection (6) clarifies what is meant by “a substantial part of the herd”. This is a question of fact depending on the circumstances. But 20% of the herd is always regarded as substantial. This change clarifies this practice. This change reproduces Change 32 in ITTOIA. See Change 30 in Annex 1.
441.The following sections refer to “a substantial part of the herd”.
	Section 116(1) (sale of animals from the herd);
	Section 117(1) (sale of whole or substantial part of herd);
	Section 118(4) and (5) (acquisition of new herd begun within five years of sale);
	Section 120(1) (replacement of part sold within five years of sale); and
	Section 124(1) (slaughter under disease control order).