Farmer rents 3 farms & builds up the business purchasing stock & machinery. When he dies his sons take over running a farm each and agree to pay their mother £400 per month for a period to purchase the stock & machinery.
Under Reg. 19 income includes income from capital unless disregarded under Pt 1 of Sch. 4 – I am happy that this capital is not disregarded under this Pt.
BUT
Under Sch. 3 income from capital is disregarded unless it is capital disregarded under Pt 2 of Sch. 4. Am I right that this tortuous legislation means the only income from capital taken into account is that generated by capital described in Pt 2 of Sch. 4?
As such, do I have to disregard £1200/month income!
Cheers
