Corporation Tax Act 2009 section 1270

Special provisions about farming and property income

Section 1270 clarifies how farming trades and property businesses are treated when carried on by a firm (partnership), ensuring that activities are aggregated at the firm level and not double-counted at the individual partner level.

• All UK farming carried on by a firm (other than farming forming part of another trade) is treated as a single farming trade of the firm, and is excluded from any individual partner's own farming trade.
• All UK property business activities and transactions carried on or entered into by a firm form a single UK property business of the firm, and are excluded from any individual partner's own UK property business.
• The same single-business aggregation rule applies to overseas property businesses carried on by a firm, with the firm's overseas property activities excluded from any partner's own overseas property business.
• These rules prevent the same farming or property income from being counted twice — once at the firm level and again at the level of an individual partner.