Section 48 — Corporation Tax Act 2010: Farming or market gardening

Farming or market gardening 48 1 This section applies if a loss is made in a trade of farming or market gardening in an accounting period (“ the current period ”).

2 Relief under section 37 is not available for the loss if a loss, calculated without regard to capital allowances, was made in the trade—

a in the current period, and b in each accounting period falling wholly or partly within the period of 5 years (“the prior 5 years”) ending immediately before the current period begins.

3 But this section does not prevent relief for the loss from being available if—

a the carrying on of the trade forms part of, and is ancillary to, a larger trading undertaking, b the farming or market gardening activities meet the reasonable expectation of profit test (see section 49), or c the trade was started, or treated as started, during the prior 5 years (see section 50).

4 A loss in a trade is calculated without regard to capital allowances by ignoring—

a the allowances treated as expenses of the trade under CAA 2001, and b the charges treated as receipts of the trade under CAA 2001.