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Definition of ‘farming’

Farming or market gardening conducted in the UK is treated as the carrying on of a trade for tax purposes. As with other trades, whether or not a person is carrying on a trade is a question of fact, but the word ‘trade’ includes the idea of exchanging goods or services for a reward. The courts have indicated what might constitute trading in a large number of cases ― the badges of trade, see the Meaning of trading guidance note.

‘Farming’ means the occupation of land wholly or mainly for the purposes of husbandry but does not include market gardening. Market gardening is defined as ‘the occupation of land as a garden or nursery for the purpose of growing produce for sale’. To be a farmer a person must satisfy two tests: the person must be in occupation of the land and the purpose of the occupation must