Readers' forum: Market traders

Two brothers own a factory unit from which they operate a trading business. In the past they have not charged the business rent for its use of the building.

The land that they own also has a reasonably sized car park next to the building for customers and staff. Since January the brothers have used the car park for a weekly car boot sales. They charge a fee for each plot and some stallholders pay an extra charge for an electricity supply to their stall.

Would it be best for this income to be declared by the brothers on their personal tax returns or might there be advantages for it to be declared in the business accounts as additional income? On the downside might this affect the trading status of the business if this income should be treated as from property rather than a trade?

The other...