Commentary on Sections Changes in partnership Section 1270: Special provisions about farming and property income
3238.This section clarifies the position of firms that carry on a farming trade or property business. It is based on sections 15, 53 and 70A of ICTA. The corresponding rule for income tax is in section 859 of ITTOIA.
3239.In section 53(2) of ICTA there is a rule that all farming carried on in the United Kingdom by a company is a single trade. The section refers to a “particular company or partnership”.
3240.In section 15 of ICTA there is a similar rule that all property income activity carried on by a person forms a single property business. Paragraph 1(3) of Schedule A refers to a “particular person or partnership”. Section 70A(4) of ICTA, which deals with overseas property businesses, refers to a “particular company or partnership”.
3241.Subsection (1) is the rule that all farming carried on by a firm is a single trade. The subsection also makes it clear that the firm’s single farming trade does not include any farming trade carried on by a company separately from the firm.
3242.Subsections (2) and (3) are the corresponding rules for UK property businesses and overseas property businesses.