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Is income received from pasture and shelter for horses trade or rent?
My client has been farming an area of land as a “pick your own” (PYO) business and the profits have been declared as a trade on the tax return. I am unsure of the size of the land that is farmed in this way but it is small enough to be tended by the farmer herself and one hired hand.
The PYO business has recently ceased and the land has been turned over to grass on which the farmer charges clients to keep horses which are provided with portable shelters.
My question is whether this new venture should continue to be shown as a trade or is it now a property business? The client is already receiving some rent in respect of a farm building that was surplus to the PYO requirements.
The definition of this new venture has implications for income tax and inheritance tax and hence...
