Commentary

B5.162 Growing crops—tenant right

Business tax
Business tax | Commentary

B5.162 Growing crops—tenant right

Business tax | Commentary

B5.162 Growing crops—tenant right

For a tenant farmer, the compensation for giving up a tenancy due from a landlord or incoming tenant on the balance sheet date (that is, the waygoing valuation) is not to be included for tax purposes.

Where payment is received, however, it may be possible to treat the whole or part of the payment as payment for trading stock. That part of any waygoing payment relating to produce, growing crops (including harvest awards) and unexhausted manures is treated as a trading receipt for trading stock1.

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