Back
Get in Touch Menu

Abolition of milk quota

10 April 2015

It is well known in the agricultural community that milk quotas will be abolished on 1 April 2015, but there could be tax implications for individuals and farming businesses holding quotas.

If the milk quota was acquired on its introduction (and therefore nothing was actually paid for it), there will be no tax. Where the milk quota was acquired in the open market, and an amount paid for it, a capital loss will arise after March 2015. The loss will generally be the amount that was originally paid, as it will be regarded as having a nil value on cessation.

Where the quota is owned by a partnership or sole trader, it should be possible to set off the loss against capital gains of the business and also against capital gains made by individual partners. The capital loss brought forward can be set off against capital gains after the annual exemption (currently £11,000 for individuals and personal representatives) has been utilised.

As always, it is good practice to speak to your professional advisors when thinking about utilising any tax reliefs such as losses against capital gains.

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
Willans
Solicitors
About
Related services
Share this article
Resources to help

Related articles

How can farmers & landowners diversify their income streams?

Agriculture & rural affairs

With the new Labour government pledging to double onshore wind power and triple solar power by 2030 – and farmers increasingly looking to diversify their income streams – many more…

Adam Hale BA (Hons), TEP, FALA
Partner

Legal agreements for biodiversity net gain

Agriculture & rural affairs

Biodiversity net gain (BNG) is now mandatory for all new property developments in England. Our agriculture & estates team details the changes below. Since 2 April 2024, grant of planning…

Adam Hale BA (Hons), TEP, FALA
Partner

Buying, selling and letting farmland during the agricultural transition

Agriculture & rural affairs

English agriculture is in the middle of a major transition, with some of the biggest changes to farming practices and farm payments seen in over half a century. Our experts…

Adam Hale BA (Hons), TEP, FALA
Partner
Contact us