Back

Our offices will be closed over the Easter weekend from 5:30pm on Thursday 28 March. We will reopen as usual at 9am on Tuesday 2 April.

Get in Touch Menu

CAP reform – Basic Payment Scheme

14 April 2015

1 January 2015 saw the introduction of the Basic Payment Scheme (BPS) which replaced the existing Single Farm Payment Scheme.

Changes under this new legislation include the new online CAP Information Service, although the RPA has now announced that paper-based applications will be accepted for this year as the new IT systems are not yet operating effectively. There are strict eligibility criteria being implemented by the EU which may prevent some businesses from claiming.

Only “active farmers” will be eligible for the BPS. To qualify as a “farmer” the claimant must either carry out agricultural activities such as growing agricultural products or maintain an agricultural area in a state suitable for grazing or cultivation. The latter is important for claimants not actually growing any agricultural products. Operating an equestrian business or a sporting ground may not qualify you under the “active farmer” criterion.Cross-country courses, gallops or point-to-point courses which have permanent facilities (such as permanent viewing stands or sanitary facilities) and are not used for solely personal use may fall foul of the regulations. However, if a cross-country course venture and farming business are operated as two distinctly separate businesses, you should not be affected.

Take care if you are thinking about restructuring your existing business to “fit” the new regulatory requirements. There are strict anti-avoidance rules which could see your claim jeopardised.

Disclaimer: All legal information is correct at the time of publication but please be aware that laws may change over time. This article contains general legal information but should not be relied upon as legal advice. Please seek professional legal advice about your specific situation - contact us; we’d be delighted to help.
Contact
Adam Hale BA (Hons), TEP, FALA
Partner
View profile
Adam Hale
Share this article
Resources to help

Related articles

Employment status: EAT confirms approach

Employment

The determination of employment status has been made clearer as the EAT confirms its approach. The EAT has provided useful guidance on the approach to determining employment status in Plastic…

Hayley Ainsworth BA, MSc
Associate, solicitor

Settlement agreements & future claims

Employment

Our employment experts look into a case surrounding settlement agreements and future claims. Mr Bathgate worked for Technip Singapore PTE Ltd as a chief officer for over 20 years. In…

Klára Grmelová MGR (LLM Czech)
Solicitor

Carrying over statutory leave

Employment

The start of the year saw a number of updates relating to the carrying over of statutory leave. From 1 January 2024, the following in regards to carrying over statutory…

Hayley Ainsworth BA, MSc
Associate, solicitor
Contact us