What is the purpose of section 267 of ITTOIA 2005?

Section 267 identifies specific land-related activities that are excluded from being treated as property income under United Kingdom law. It carves out farming, market gardening, commercial occupation of land, and mines and quarries, redirecting their profits to the trading income provisions instead of the property income rules.

How is farming and market gardening taxed under ITTOIA 2005 section 267?

Farming and market gardening carried on in the United Kingdom are not treated as generating property income. Instead, under section 9 of the Act, they are treated as a trade. Profits are therefore taxed under the trading income rules rather than the property income rules, reflecting the active commercial nature of these activities.

Are mines and quarries treated as property income under section 267?

No. Activities carried on for the purposes of mines, quarries and similar concerns are excluded from the property income rules by section 267. Their profits are instead taxed as trading income under section 12 of ITTOIA 2005, recognising the active commercial enterprise nature of such operations under United Kingdom tax law.

Does section 267 exclude rental income from property income?

No. Section 267 only excludes farming, commercial occupation of land, and mining or quarrying activities from property income. Ordinary rental income from letting a property to a tenant is not excluded. Such rental income remains within the property income rules and is taxed accordingly under United Kingdom law.

Income Tax (Trading and Other Income) Act 2005 section 267

Activities not for generating income from land

Section 267 identifies specific land-related activities that are excluded from being treated as property income, because they are instead taxed as trading income under other provisions.

Farming or market gardening in the United Kingdom is not treated as generating property income — it is instead taxed as a trade under section 9.
Other forms of commercial occupation of land are similarly excluded from property income, as they may be taxed as trading income under section 10.
Activities connected with mines, quarries and similar concerns are excluded from property income, being dealt with under section 12 as trading profits.
The overall effect is to draw a clear boundary between property income and trading income where land-based activities are concerned.

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