Sideways loss relief for farming losses

In 1995 the taxpayer bought a conventional working agricultural farm of about 75 acres. Over the years he acquired more land until by 2007 the farm extended to 438 acres. He was a businessman and had no experience of running a farm. He never lived in the farmhouse and in 2007 he employed a general manager but he was made redundant in 2010 because costs were out of control.

The farm was run on an organic basis until 2009-10 when the taxpayer reverted to conventional methods.

The taxpayer carried on other activities on the farm including a box scheme holiday lets a farm shop a micro-brewery toymaking and a mustard business.

The farm made losses from the year he bought it until 2012-13. Since then it has been profitable.

The taxpayer claimed sideways loss relief for the five-year period 2007-08 to 2011-2012....