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What is farming and market gardening for tax purposes?

‘Farming’ means the occupation of land wholly or mainly for the purposes of husbandry but does not include market gardening. Market gardening is defined as ‘the occupation of land as a garden or nursery for the purpose of growing produce for sale’. It is important to understand the exact detail of the activity in terms of the specific land use and the whole farming enterprise. Further details on the definition of farming can be found in the Definition of farming trade guidance note.

The distinction between farming as a hobby and farming commercially is also important and farming has its own set of hobby farming rules which restrict loss relief when farming is not done on a commercial basis. More details of the rules are set out in the Farming ― restriction of losses for hobby farming guidance note.

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