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(3) (a) In this subsection, “trading income”, in relating to any trade, means the income from the trade computed in accordance with the rules applicable to Case I of Schedule D before any deduction under this Chapter and after any set-off or reduction of income by virtue of section 396 or 397, and after any deduction or addition by virtue of section 307 or 308, and after any deduction by virtue of section 666.

“trading stock”, in relation to the trade of farming, has the same meaning as in section 89 and, in determining the value of a person’s trading stock at any time for the purposes of a deduction under section 666, to the extent that at or before that time any payments on account have been received by the person in respect of any trading stock, the value of that stock shall be reduced accordingly.

(a) section 666(1) shall apply as if “100 per cent” were substituted for “25 per cent”;

(a) section 666(1) shall apply as if “100 per cent” were substituted for “25 per cent”, and

(a) section 666(1) will apply as if “100 per cent” were substituted for “25 per cent”, and

(b) Where Subject to subsection (5B), where a qualifying period commences in the year of assessment 2012 or any subsequent year of assessment, the qualifying farmer shall be entitled to relief in respect of deductions under section 666(1), by virtue of subsection (5), of an amount not exceeding—

(2) Subject to subsection (3) Subject to subsection (3) and (3A), where a person is a partner in a registered farm partnership, section 666 shall apply as if in that section—

“relevant deduction” means a deduction under section 666(1), in accordance with subsection (2)(a) of this section;

“specified person” means a person referred to in subsection (2), other than a person entitled to a deduction under subsection (1) of section 666 equal to 100 per cent of the excess referred to in the said subsection (1).

(4) Subject to subsection (4A), where, not later than the end of the period over which the excess is treated as arising under subsection (3), the person incurs or intends to incur expenditure on the replacement of stock to which this section applies in an amount not less than the relevant amount, then the person shall, in substitution for any deduction to which the person might otherwise be entitled under section 666 as a result of incurring an amount of expenditure equal to the relevant amount, be deemed to be entitled to a deduction under that section—

and the amount of that deduction shall be an amount equal to the amount treated as arising in each accounting period under subsection (3)(a) or (3)(b), as the case may be, and section 666 shall apply with any necessary modifications in order to give effect to this subsection.

(a) the aggregate deduction to which the person is deemed by subsection (4) to be entitled under section 666 in respect of the 4 accounting periods referred to in paragraph (a) or (b), as the case may be, of that subsection shall be reduced to an amount that bears the same proportion to that aggregate deduction as the expenditure actually incurred in those 4 accounting periods bears to the relevant amount, and

(7) Where, by virtue of subsection (4), a person is deemed to be entitled to a deduction under section 666 in respect of the accounting period referred to in subsection (6), then—

(2)(a) In any case where a person’s accounting period does not coincide with a period of account or with 2 or more consecutive periods of account, the person’s increase in stock value in the accounting period shall be determined for the purposes of section 666 not in accordance with subsection (1) of that section but by reference to a period (in this section referred to as “the reference period”) determined in accordance with this subsection.

(3)(a) In any case where subsection (2)(a) applies, a person’s increase in stock value in the accounting period shall be determined for the purposes of section 666 by the formula—

(b) In any case where a person’s increase in stock value in an accounting period is to be determined in accordance with paragraph (a), then, in section 666 and in subsections (4) to (6), any reference to the person’s closing stock value shall be construed as a reference to the value of the person’s trading stock at the end of the reference period.

(4)(a) A person shall not be entitled to a deduction under section 666 for an accounting period if that accounting period ends by virtue of the person ceasing to—

(5)(a) Subject to paragraphs (b) to (d), where a person claims a deduction under section 666 and, immediately before the beginning of an accounting period, the person was not carrying on the trade to which the claim relates, then, unless—

the person shall be treated for the purposes of section 666 and subsections (1) to (4) as having at the beginning of the accounting period trading stock of such value as appears to the inspector to be just and reasonable trading stock of such value as is just and reasonable.

(2) Notwithstanding any other provisions of the Tax Acts, trading stock comprising stallions shall be disregarded for all purposes of section 666.