Income Tax (Trading and Other Income) Act 2005 section 859

Special provisions about farming and property income

Section 859 clarifies how farming trades, UK property businesses, and overseas property businesses are treated when carried on by a firm (partnership), ensuring a clear separation between the firm's activities and those of its individual partners.

• All farming carried on by a firm in the United Kingdom (other than farming forming part of another trade) is treated as a single trade of the firm
• A firm's single farming trade is kept separate from any farming trade that an individual partner may carry on personally
• All property-related businesses and transactions carried on by a firm are consolidated into either the firm's UK property business or the firm's overseas property business, as appropriate
• Any business or transaction included in the firm's UK or overseas property business is excluded from the corresponding property business of any individual partner in the firm