Income Tax (Trading and Other Income) Act 2005 section 10

Commercial occupation of land other than woodlands

Section 10 treats the commercial occupation of land in the United Kingdom as a trade for income tax purposes, excluding farming, market gardening, forestry preparation, and woodlands.

• Occupying land commercially in the UK is treated as carrying on a trade or part of a trade for income tax purposes
• Occupation counts as "commercial" if the land is managed on a commercial basis and with a view to making profits — both conditions must be met
• Farming, market gardening, land being prepared for forestry, and woodlands are all excluded — farming and market gardening fall under section 9, and woodlands under section 11
• The section provides certainty that commercial land occupation is taxed as trading income, even where the activity might not otherwise be regarded as a trade under general principles