ETASSUM52210 | Enterprise Management Incentives (EMI): Excluded activities: farming or market gardening

Paragraph 16, Schedule 5 of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA)

Farming or market gardening are excluded activities for EMI purposes.

Farming and market gardening are defined at section 996 Income Tax Act 2007.

Farming means the occupation of land wholly or mainly for the purposes of husbandry. ‘Husbandry’ includes hop growing, the breeding and rearing of horses and the grazing of horses for those purposes, as well as short rotation coppicing.

Farming is not necessarily a trade in the proper sense of the word, but is treated as a trade for all tax purposes by section 36 Corporation Tax Act 2009 and section 9 Income Tax (Trading and Other Income) Act 2005 (see BIM55051).

Market gardening is the use of a garden or nursery for the purpose of growing produce for sale (see BIM62601).