BIM55055 - Farming in tax law: occupation of land

There is no definition of occupation within the legislation and so it takes on its ordinary everyday meaning. It is not synonymous with ownership or legal possession but is a question of fact. Our understanding of occupation and what facts are relevant has been assisted by consideration of the occupation of property as understood in the law of Rating and we now conclude occupation involves:

• Activity and requires acts by the occupier as user of the property
• A physical possession and presence and must be actual
• A degree of permanence
• The conveying of a benefit to the possessor

In the past we also took the view that occupation by a person must be to the exclusion of all others and while this feature is still persuasive it is not essential. Share farming is illustrative of this - BIM55070.

To be a farmer, a person must be in occupation of land. Usually there is no difficulty about this. Most farmers are clearly the sole occupiers of the land they farm, whether as owner-occupiers or tenants. But some situations are less clear-cut and guidance on these is provided as follows-

• Farm land let for a period of 365 days or more - BIM55060
• Short-term grazing lets - BIM55065
• Share farming - BIM55070 - BIM55085
• Contract farming - BIM55090