Part 3U.K.Trading income

Chapter 9U.K.Trade profits: other specific trades

Reserves of marketing authorities etcU.K.

153Reserves of marketing authorities and certain other statutory bodiesU.K.

(1)This section applies to a statutory body if its object (or one of its objects) is—

(a)marketing an agricultural product, or

(b)stabilising the price of an agricultural product.

(2)Subsections (3) and (4) apply if the body is required, by or under an approved scheme or arrangement (“the scheme”), to pay the whole or part of any trading surplus into a reserve fund meeting the conditions specified in section 154.

(3)Any sums which the body is required by or under the scheme to pay into the fund out of the profits of its trade are allowed as deductions in calculating the profits of the trade.

(4)Any sums withdrawn by the body from the fund are taken into account as trading receipts, except so far as—

(a)they are required, by or under the scheme, to be paid to a Minister or department,

(b)they are distributed to producers of the product in question, or

(c)they are refunded to persons who pay any levy or duty.

(5)In this section—

• “approved scheme or arrangement” means a scheme or arrangement approved by, or made with, a Minister or department,

• “producers of the product” includes persons producing the product from another product,

• “statutory body” means a body established by or under an enactment,

• “trading surplus” means a surplus from the body's trading operations or other trade receipts.