Section 668 of the Taxes Consolidation Act, 1997, provided for profit deferral for tax purposes and 100% stock relief on the compulsory disposal of cattle due to statutory disease eradication measures. This was amended by section 49 of the Finance Act, 2001, which extended the provisions to include all animals and poultry that are specified in Part 1 and Part 2 of the Schedule to the Diseases of Animals Act, 1966.
The amendment was specifically included to allow for circumstances where a farmer's livestock is affected by the foot and mouth disease. It applies where a farmer disposes of any such animals on or after 6 December 2000 as a result of which compensation is paid to him or her by the Minister for Agriculture, Food and Rural Development, Deputy Walsh. Where a farmer elects for treatment under section 668, the profits arising from the disposal are excluded from the profits of the accounting period in which the disposal took place and are included in equal instalments either in the profits of the two accounting periods subsequent to the period in which the disposal took place or, at the option of the farmer, in the accounting period in which the disposal actually took place and in the following accounting period.