# How to add just part of a cow to herd basis

How to calculate herd basis addition if it isn't a whole cow?

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• ### Overpayment relief- out of time

Client keeps a herd of high genetic value breeding cows, which are under herd basis in accounts. Herd numbers have been increased, but one of the purchased animals is a high genetic value cow, and the deal is, he keeps it in his herd, but he’s only jointly purchased a one quarter share for £15,000, so the total cost of the cow was £60,000 shared between 4 different farmers. So, when I update the herd value, do I calculate the new average cost per cow of the herd based on the £60,000 or the £15,000, which is only one quarter of a cow!! The herd technically now numbers 110.25 cows .

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By Ardeninian
16th May 2024 16:08

Yes, add in the £15k and the 0.25 cow - s112(7) ITTOIA: "This Chapter applies - (b) in relation to shares in animals as it applies in relation to animals themselves."

Thanks (6)
By accountantccole
17th May 2024 09:30

Picturing just a leg of a cow wandering round a field.......

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Replying to accountantccole:
By I'msorryIhaven'taclue
17th May 2024 09:52

Heh heh... you're thinking in hindsight ;)

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By JamesDS
17th May 2024 09:38

Insurance claim when it escapes:
Claimant: "My bull escaped and is injured"
Insurer: "Which bit escaped?"
Claimant: "All of it"
Insurer: "What, all at the same time? That seems rather unlikely"

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Replying to JamesDS:
By Oldmanwetmix
18th May 2024 12:55

Insurance, bet he hasn't thought of that one!! Do see the odd claim for these high value cows

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By richard thomas
17th May 2024 12:38

Best heading for an Any Answers question in ages!

As Armenian says, section 112(7)(b) ITTOIA treats the ¼ share in the same way as a whole animal, but I assume your question is whether it follows from that the average basis sanctioned by HS232 allows or requires the total costs of 111 cows to be used. That might depend on whether the client incurred the costs of all limbs of the beast, or whether the other part-owners contributed.

I am not familiar enough to know if the other part owners are able to make a herd basis election in relation to their shares so that the cow could be counted up to 4 times.

I think the solution should be that the basis which gives the fairest answer taking into account the position of the other part owners is the right one.

Once when I was working in the Revenue I was dealing with a company that imported French microbes for making Stilton cheese (mon Dieu - sacrilege) and I tongue in cheek asked them if they intended to make a herd basis election for the microbes or were they stock?

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Replying to richard thomas:
By Oldmanwetmix
18th May 2024 13:12

I don't think the microbes in the cheese would qualify, as they become part of the food. The microbes used as the source to culture larger quantities for selling to cheese makers may qualify, however, their value probably wouldn't fluctuate enough during their life time to make an election worthwhile. Also, how would you count them to assess changes in herd numbers!!

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By Oldmanwetmix
18th May 2024 13:05

Thanks everyone, I was on the horns of a dilemma. Despite the jokes, it was a serious question

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By I'msorryIhaven'taclue
18th May 2024 13:29

The obvious workaround is for the same consortium of farmers to buy three bottom-of-the-range-cows in the same ownership proportions - one quarter apiece - so that each farmer owns four quarters of a cow and everyone's herd numbers revert to whole integers.

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