HMRC internal manual

Stamp Duty Land Tax Manual

Scope: when is Stamp Duty Land Tax (SDLT) chargeable: higher rate charge for acquisitions of residential property by certain non-natural persons FA03/S55/SCH4A: qualifying farm worker

An individual is a ‘qualifying farm worker’ if he or she has a substantial involvement in the day to day running of the trade or in the direction and control of the conduct of the trade.

Substantial involvement in the day to day running of the trade will be taken by HMRC to mean an individual who works for 20 hours per week. Day to day work of the trade will mean the work of the farming trade. This can include any tasks that are necessary for the operation of the trade such as ploughing, spraying, harvesting, milking, birthing, and so on. The 20 hours is per individual and not the amount that a group of individuals in a dwelling may together work in the trade. It must also be 20 hours per week on average throughout the year.

Equally, where the individual is responsible for the running of the farming trade rather than the day to day work of the farm it is expected that the work will represent a minimum of 20 hours per week for any one individual. That work will include any responsibilities of the manager of the farming trade including decisions to make purchases of equipment, additional land, contracts for services to be provided, decisions on when, where and how to sell produce and stock, and so on.

Where an individual is carrying out duties that would count as either day to day work or direction and control of the trade then the time spent on both can be considered. In other words, if 10 hours per week are spent on each category on average, then that will be treated as substantial involvement.