Revenue Note for Guidance

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Revenue Note for Guidance

OTHER SPECIAL PROVISIONS

PART 23

FARMING AND MARKET GARDENING

CHAPTER 1

Interpretation and general

Overview

This Chapter is concerned with the taxation of profits from farming and market gardening. These are charged to tax under Case I of Schedule D (section 655). Provision is made for a scheme of 3 year income averaging in the case of farming profits (section 657) and for the granting of capital allowances for capital expenditure on farm buildings and other works (section 658) and on farm buildings needed for the control of pollution (section 659). Measures are included to deal with the valuation of farm trading stock on the discontinuance of farming (section 656), to deem wear and tear allowances in respect of machinery or plant to have been made in certain cases (section 660) and to restrict relief in respect of losses in various cases (sections 661, 662 and 663). Finally, exemption for certain income from long-term leasing of farm land is made available (section 664).

654 Interpretation (Part 23)

This section defines a number of terms for Part 23 other than section 664.

“farming” is defined to mean farming farm land, that is, land in the State which is wholly or mainly occupied for husbandry, other than market garden land.

“market garden land” is land in the State which is occupied as a nursery or garden for the sale of the produce (but excluding land used for growing hops), and “market gardening” is to be construed by reference to this meaning.

“occupation” of land, other than market garden land, is having the use of the land or the right to graze livestock on it.

Relevant Date: Finance Act 2019