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<p>A longstanding feature of the UK tax system is that a person’s UK farming income
is treated as one trade. When a farming business diversifies, any non-farming activities
are treated as separate sources of income that need to be declared separately on the
tax return. The Government recognises that this creates additional administrative
burdens. However, taxing diversified rural businesses as one unit would carry a risk
that uncommercial activities might be grouped together with profitable trades. The
Government keeps all taxes under review but has no plans to change the current tax
rules for diversified rural businesses.</p>
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