Section 1125: “Farming” and related expressions
3231.This section defines “farming” and “market gardening” and modifies the meaning of “forestry” and “woodlands”. It is based on section 832 of ICTA and section 154 of FA 1995. The corresponding provision for income tax is in section 996 of ITA.
3232.Subsection (3) provides that the cultivation of short rotation coppice is to be regarded as husbandry. To be then regarded as farming, within the meaning given by subsection (1), the cultivation of short rotation coppice must involve the occupation of land. As it is impossible to cultivate short rotation coppice without occupying land, such cultivation is also regarded as farming.
3233.As with section 996 of ITA, there is no territorial restriction in the definitions in this section. There is therefore no needin section 48, which rewrites section 397 of ICTA (restriction of loss relief in farming and market gardening cases), to apply the provision to farming outside the United Kingdom as was the case in section 397(5) of ICTA. Similarly, the cultivation of short rotation coppice on land outside the United Kingdomis regarded as husbandry and therefore as farming.
3234.If a territorial restriction is required, it is applied to a particular section (following the pattern in ITA). So subsection (7) restricts the definitions, in their application to paragraph 26 of Schedule 15 to FA 2000 (corporate venturing scheme), to farming or market gardening in the United Kingdom.
