Commentary on Sections Overview Section 859: Special provisions about farming and property income
3225.This section clarifies the position of firms that carry on a farming trade or property business. It is based on sections 15 (paragraph 1(3) of Schedule A), 53(2) and 65A(4) of ICTA.
3226.In section 53(2) of ICTA there is a rule that all farming carried on in the United Kingdom by a person is a single trade. The section refers to a “particular person or partnership or body of persons”.
3227.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 65A(4) of ICTA, which deals with overseas property businesses, also refers to a “particular person or partnership”.
3228.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 is separate from any farming trade carried on personally by a partner in the firm.
3229.Subsections (2) and (3) are the corresponding rules for UK property businesses and overseas property businesses.