ÀÏ˾»úÎçÒ¹¸£Àû

Definition of farming trade


Produced by a Tolley Owner-Managed Businesses expert
Owner-Managed Businesses
Guidance

Definition of farming trade


Produced by a Tolley Owner-Managed Businesses expert
Owner-Managed Businesses
Guidance
imgtext

This guidance note defines what is considered to be farming and what activities are not generally taken to be treated as being a farming business.

Definition of ‘farming’

Farming or market gardening conducted in the UK is treated as the carrying on of a trade for tax purposes. As with other trades, whether or not a person is carrying on a trade is a question of fact, but the word ‘trade’ includes the idea of exchanging goods or services for a reward. The courts have indicated what might constitute trading in a large number of cases ― the badges of trade, see the Meaning of trading guidance note.

‘Farming’ means the occupation of land wholly or mainly for the purposes of husbandry but does not include market gardening. Market gardening is defined as ‘the occupation of land as a garden or nursery for the purpose of growing produce for sale’. To be a farmer a person must satisfy two tests: the person must be in occupation of the land and the purpose of the occupation must

Access this article and thousands of others like it
free for 7 days with a trial of Tolley+™ Guidance.

TAKE A FREE TRIAL
Powered by
  • 01 May 2024 11:02

Home/ Tolley Tax Guidance/ Owner-Managed Businesses / Advising special businesses

Popular Articles

Owner-Managed Businesses

Residential property and capital allowances

Residential property and capital allowancesResidential property ― plant and machinery allowancesOrdinary residential property does not, and never has, qualified for capital allowances. as CAA 2001, s 35 denies plant allowances for expenditure incurred in providing plant or machinery for use in a

14 Jul 2020 17:14 | Produced by Tolley in association with Martin Wilson and Steven Bone Read more Read more
Personal Tax

VAT on property disposals

VAT on property disposalsThis guidance note provides an overview of the VAT treatment of selling property that is located in the UK. The UK includes Great Britain, Northern Ireland and the territorial sea of the UK. The sale of any land or building located outside the UK is outside the scope of UK

14 Jul 2020 13:57 | Produced by Tolley Read more Read more
Corporation Tax

Substantial shareholding exemption ― overview

Substantial shareholding exemption ― overviewThe substantial shareholdings exemption (SSE) provides a complete exemption from the liability to corporation tax on the gains generated from qualifying disposals of shares and interests in shares by qualifying companies. No claim is required. Provided

14 Jul 2020 13:44 | Produced by Tolley Read more Read more