Farm losses incurred by the appellant could not be claimed generally against income received from an excavation licence as part of his trade/farming income, or ‘sideways’ against that property income.
The appellant’s farming activities had been loss-making since 2002/03. However, his income was supplemented by rental income received from a lease of part of his farm so that the tenant could quarry the land and excavate gravel.
The appellant submitted tax returns for each of the years ended 5 April 2010, 2011 and 2012 claiming relief for trade losses in respect of his farming business against the income received from the rented land (and capital gains arising from selling part of his farm). Up to 2011/12, the income had previously been returned as rental income, but the appellant subsequently submitted that this was an error, and that the revenue should in fact have been returned as trading income, to be
