Income Tax (Trading and Other Income) Act 2005 section 9

Farming and market gardening

Section 9 establishes that farming and market gardening in the United Kingdom are treated as a trade for income tax purposes, and that all UK farming carried on by a single person is treated as one trade.

• All farming or market gardening carried on in the UK is automatically treated as a trade for income tax purposes, regardless of whether it is run commercially or with any intention of making a profit.
• Where a person carries on farming in the UK that is not part of another trade, all of that farming is treated as a single trade — so a person with multiple farms has one farming trade, not several.
• Farming carried on by a person as a member of a firm or as part of a body of trustees is treated separately from any farming that person carries on individually.
• Where farming is carried on by a firm (partnership), separate rules in section 859 of the Act explain how the single trade rule applies.