JH/BLY/39/3 - [Herd basis rules]

JH/BLY/39/3

Sub file

[Herd basis rules]

1992-1994

79 items Mixed

Blyford Farms Ltd Income tax.
National Farmers' Union
Country Landowners' Association

Contains correspondence which relates to approaches which were made to the Board of Inland Revenue for them to consider the meaning of "to keep" in the context of herd basis rules. Schedules refer to animals which are kept and clarification is sought on whether the herd is to be owned as well as kept, or whether it could be owned by a contractor yet kept by the farm. The interpretation of these rules has bearing on a herd basis claim which was put in by Blyford Farms Ltd and which was rejected by the Receiver. The Receiver was claiming tax from the sale of a non-pedigree commercial herd kept on the herd basis. They claimed that the proceeds of the sale were not tax free, but were to be treated as trading receipt because the farmer had chosen to hire a herd owned by a contractor, also on the herd basis. Included is correspondence with the NFU and CLA who approach the Board of Inland Revenue to reassess the meaning of their rules.