B5.175 Restrictions of relief for losses in farming and market gardening
Relief for farming losses may be restricted:
- Ìý
•ÌýÌýÌýÌý under the general restriction for income tax trades not carried on on a commercial basis and with a view to realisation of profits in the trade1; or
- Ìý
•ÌýÌýÌýÌý under a specific restriction for farming and market gardening where losses were incurred in each of the five previous successive years2
The terms 'farming' and 'market gardening' have the meanings described in B5.101 except that they are extended to activities outside the UK3.
Restriction for non-commercial trading generally
For detailed commentary on this restriction, which does not apply for corporation tax purposes, see B8.202. Although the restriction is widely drawn to cover any non-commercial trading or vocational activity, it was primarily aimed at so-called 'hobby farmers'. The test for restricting relief under these provisions is a subjective one (it is concerned with what was in the mind of the farmer), but as in practice, this
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