Farming definition

[renewablejohn]

Anybody care to define farming or more to the point HMRC definition of farming.

 

[Cowabunga]

At least a 'potentially viable' business that produces something to sell?

 

[Brisel]

The growing of crops or livestock to sell as part of a trading profitable business. Just one word in there I'm not sure about...

What's your angle on this - IHT, income tax?

 

[Clive]

I think you should have to be a primary seller of a grown or reared product

 

[Cowabunga]

I think you should have to be a primary seller of a grown or reared product

Half a dozen eggs a week through the books and you are a 'farmer'.

 

[Brisel]

Lose £500,000/year producing those eggs & they will question you on it!

 

[Clive]

Half a dozen eggs a week through the books and you are a 'farmer'.

Maybe add "at a level with potential to sustain employment"

 

[Daniel]

Lose £500,000/year producing those eggs & they will question you on it!

Depends, it wouldn't be too difficult to do that some years!

 

[renewablejohn]

The growing of crops or livestock to sell as part of a trading profitable business. Just one word in there I'm not sure about...

What's your angle on this - IHT, income tax?

Just some interesting view points raised by HMRC at the recent tribunal I attended.

According to this HMRC officer the following categories split between farming and non farming.

Keeping of Livestock - Farming
Crop of Hay - Farming
Arable - Not Farming
Commercial Woodland -Not Farming
Woodland Ancillary to a Livestock Enterprise - Not Farming
Coppice Woodland - Farming
Woodland Grant Scheme - Farming
Horticulture - Not Farming
Christmas Trees - Not Farming
Farm Equipment Hire - Not Farming
Timber Sales - Not Farming
Sale of Honey - Farming

Just thought some might have an opinion my barrister certainly did.

 

[Brisel]

Don't quite understand how arable isn't farming!

 

[renewablejohn]

Don't quite understand how arable isn't farming!

Apparently all down to definition of husbandry

http://www.hmrc.gov.uk/manuals/bimmanual/BIM55051.htm

The other ridiculous one is large factory type farms beef,pigs, chickens etc are not farms if they buy in all there feed from external sources.

http://www.hmrc.gov.uk/manuals/bimmanual/BIM55105.htm

 

[glasshouse]

hmrc are so f**ked its not funny.

 

[WLPFoundation]

Just some interesting view points raised by HMRC at the recent tribunal I attended.

According to this HMRC officer the following categories split between farming and non farming.

Keeping of Livestock - Farming
Crop of Hay - Farming
Arable - Not Farming
Commercial Woodland -Not Farming
Woodland Ancillary to a Livestock Enterprise - Not Farming
Coppice Woodland - Farming
Woodland Grant Scheme - Farming
Horticulture - Not Farming
Christmas Trees - Not Farming
Farm Equipment Hire - Not Farming
Timber Sales - Not Farming
Sale of Honey - Farming

Just thought some might have an opinion my barrister certainly did.

 

[WLPFoundation]

HMRC officer where are they at. What about Ecology, wildlife, encouraging wildlife planting, conservation of our beautiful countryside. I beg to differ with their catagories

 

[renewablejohn]

The scary part is when they use these definitions to decide things like "Are you an "active" farmer". "Is your farmhouse wholly for farming purposes".

 

[smcapstick]

There is no minimum acreage, then?

 

[renewablejohn]

There is no minimum acreage, then?

As far as I am aware no minimum at the moment but I think that will change when BPS arrives as the definition of an active farmer will change to one who is in receipt of BPS therefore excluding all farmers who have less than 5 hectares of eligible land. I would have thought NFU and CLA would be jumping up and down to protect small farmers as in other EU countries the minimum set under EU rules is 1 hectare. Just shows where the bulk of the subscriptions come from for both NFU and CLA.

 

[franklin]

Just some interesting view points raised by HMRC at the recent tribunal I attended.

According to this HMRC officer the following categories split between farming and non farming.

Keeping of Livestock - Farming
Crop of Hay - Farming
Arable - Not Farming
Commercial Woodland -Not Farming
Woodland Ancillary to a Livestock Enterprise - Not Farming
Coppice Woodland - Farming
Woodland Grant Scheme - Farming
Horticulture - Not Farming
Christmas Trees - Not Farming
Farm Equipment Hire - Not Farming
Timber Sales - Not Farming
Sale of Honey - Farming

Just thought some might have an opinion my barrister certainly did.

Market gardening has always been excluded, and Christmas trees have been considered to fall into this area. Where do they get their definition of "husbandry" then?

Good book is Tax Planning for Farm and Land Diversification but I forget who it is by.

 

[blondeagadvisor]

There are different definitions of farming depending on what purpose you are looking at- e.g. they differ for planning and for taxes etc...