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Car boot sales

16 May 2007
Issue: 4108 / Categories: Forum & Feedback

Our clients are a farming couple who also regularly run a car boot sale. On our advice, the clients declared this income as property income on the 'Land and Property' pages of their tax returns. HMRC are seeking to argue that this is trading income and is thus subject to Class 4 National Insurance. The level of the clients' income is such that this would be a substantial extra liability. Our contention is that it is property income deriving from the exploitation of land.

Our clients are a farming couple who also regularly run a car boot sale. On our advice the clients declared this income as property income on the 'Land and Property' pages of their tax returns. HMRC are seeking to argue that this is trading income and is thus subject to Class 4 National Insurance. The level of the clients' income is such that this would be a substantial extra liability. Our contention is that it is property income deriving from the exploitation of land.
The couple are involved themselves but also arrange for others to collect entry fees from visitors and pitch fees from traders. They supervise parking provide portable toilet facilities and arrange for independent catering facilities to be available. They also organise local advertising for the event.
HMRC's main argument seems to be that the level of organisation is sufficient that the activity is of...

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