S221 Income Tax (Trading and Other Income) Act 2005
Qualifying trades, professions or vocations for the purposes of averaging include:
- farming or market gardening in the UK;
- intensive rearing in the UK of livestock or fish on a commercial basis for the production of food for human consumption.
Farms or market gardens outside the UK are not included.
Averaging is thus available to:
- sole traders,
- partners (but excluding corporate partners),
- executors, personal representatives and trustees,
who are carrying on a trade of farming or market gardening or intensive rearing, the profits of which are chargeable to Income Tax.
Averaging is not available where, for example:
- the trade is agricultural contracting since this trade does not involve the occupation of farm land (see BIM55055 onwards),
- the trade includes substantial non-farming activities such as haulage or a caravan site as well as farming.