Commentary

B5.103 Letting of farm land and grazing licences

Business tax
Business tax | Commentary

B5.103 Letting of farm land and grazing licences

Business tax | Commentary

B5.103 Letting of farm land and grazing licences

Letting of farm land

An owner of farm land may let his land to a tenant instead of farming it himself. It is a basic rule that the letting of land is not taxed as a trade, and this rule is applied even where a landowner undertakes certain management functions1. As a consequence, income received by a landowner from a tenant who farms the land is property income2. The tenant, as occupier of the farm land, is taxed on trading profits as a farmer3.

Grazing licences

It is possible for the owner of

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