Commentary

B5.106 Farming receipts

Business tax
Business tax | Commentary

B5.106 Farming receipts

Business tax | Commentary

B5.106 Farming receipts

The ordinary rules for computing trading profits apply to farming and market gardening1. However, problems may arise in determining how to treat receipts in respect of the farming items given below.

Farming grants, subsidies and compensation payments

Detailed commentary on a variety of farming grants, subsidies and compensation payments (including in respect of tenant rights), and a table of various compensation receipts, is in B5.108. For commentary on compensation for compulsory slaughter of farm animals, see B5.111.

Sales of turf

Receipts from sales of turf are treated either as part of the farming receipts assessable as trade profits or, where there are no associated farming activities, as receipts of a property business2 arising from a right over land (namely, the right to take turf from the land)3.

In Lowe v J W Ashmore Ltd4, the taxpayer company agreed to let contractors remove

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