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Where Taxpayers and Advisers Meet

Fishery Business

lisahorsfall71
Posts:1
Joined:Fri Aug 18, 2017 3:25 pm
Fishery Business

Postby lisahorsfall71 » Fri Aug 18, 2017 3:38 pm

Hi
I have a friend who owns land with a lake. He has been running a fishery business in which he is issuing permits, maintaining the waters, has a website and supplying a bailiff. His accountant has been putting this income on the land and property pages of the tax return. Is this correct?

robbob
Posts:3228
Joined:Wed Aug 06, 2008 4:01 pm

Re: Fishery Business

Postby robbob » Sat Aug 19, 2017 12:12 pm

His accountant has been putting this income on the land and property pages of the tax return. Is this correct?
This may sound a little fishy as the activities are very similar to a trade in some practical respects - however the property income manual confirms that there is scope for fishing rights income to be treated as property income unless there is substantial commercial undertaking.


The fishing activities excluded from property income are those carried on by a substantial commercial undertaking. These are a ‘concern’ within ICTA88/S55 or ITTOIA05/S12. The letting of fishing rights is not usually a ‘concern’ of this type and the profits from it are included (see PIM1060).
[/quote]


https://www.gov.uk/hmrc-internal-manual ... al/pim1112
https://www.gov.uk/hmrc-internal-manual ... al/pim1060

Further somewhat older but presumably still relevant info here

https://www.taxation.co.uk/articles/200 ... ack-nature
http://www.taxationweb.co.uk/forum/inco ... 39422.html


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