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Chapter BIM55070

Document Cited authorities 2 Cited in Related
Vincent
Published date22 November 2013
Record NumberBIM55070
CourtHM Revenue & Customs

S996(1) Income Tax Act 2007, S1125 Corporation Tax Act 2010

Share farming is a method of farming where two parties jointly farm the same land (see BIM55075).

Typically a share farming agreement involves the owner or tenant of farm land (the landowner) who enters into a contract with a working farmer (the share farmer).

The detail of a share farming contract is a matter for the parties but often they include the following features:

  • the landowner provides the farm land and buildings, fixed equipment and machinery, major maintenance of the buildings and his expertise,
  • the share farmer provides labour, field and mobile machinery and his expertise,
  • other costs such as seed, fertilisers and feed are shared. If there is a livestock enterprise then ownership of the animals is shared on the basis that each party owns a share in each animal,
  • each party is rewarded by a share in the produce of the farm which he or she is free to sell as he or she likes,
  • each party produces his own accounts and is responsible for his own tax and VAT returns.

Share farming enables a landowner to farm as a joint venture with a person who has farming expertise. The landowner may be someone with years of experience of farming the land concerned who...

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