Generating income from landU.K.
266Meaning of “generating income from land”U.K.
(1)In this Chapter “generating income from land” means exploiting an estate, interest or right in or over land as a source of rents or other receipts.
(2)“Rents” includes payments by a tenant for work to maintain or repair leased premises which the lease does not require the tenant to carry out.
(3)“Other receipts” includes—
(a)payments in respect of a licence to occupy or otherwise use land,
(b)payments in respect of the exercise of any other right over land, and
(c)rentcharges and other annual payments reserved in respect of, or charged on or issuing out of, land.
(4)For the purposes of this section a right to use a caravan or houseboat at only one location is treated as a right deriving from an estate or interest in land.
267Activities not for generating income from landU.K.
For the purposes of this Chapter the following activities are not carried on for generating income from land—
(a)farming or market gardening in the United Kingdom (but see section 9 (UK farming or market gardening treated as trade)),
(b)any other occupation of land (but see section 10 (certain commercial occupation of UK land treated as trade)), and
(c)activities for the purposes of a concern to which section 12 applies (profits of mines, quarries etc.).