Background

A farming trade must, like any other business, consider the general test relating to non-commercial activities (see ¶260-200). In addition, however, a further restriction may apply to a loss incurred in a trade of farming or market gardening.

The thinking behind the restriction is explained at BIM 85601 as follows: ‘people with income from other sources sometimes take up farming for the sake of recreation or the lifestyle or status which it offers rather than for genuinely commercial reasons’. Parliament therefore took the decision to deny some forms of loss relief to farmers in certain circumstances.

Need help? Get subscribed!

To subscribe to this content, simply call 0800 231 5199

We can create a package that’s catered to your individual needs.

Or book a demo to see this product in action.