Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Tax and subsidy changes for farms

23 February 2021 / Julie Butler
Issue: 4781 / Categories: Comment & Analysis
All change
© iStockphoto/K_Thalhofer

Key points

  • The basic payment scheme subsidy for farmers will be replaced in the 2020s.
  • Effect of the reduced threshold for capital gains tax business asset disposal relief.
  • Only or main residence relief for farmhouse.
  • The benefits to a tenant and landlord of a tenancy surrender.
  • Lifetime transfers may involve a reservation of benefit.

The Department for Environment Food and Rural Affairs (Defra) has confirmed that farmers in England will be able to take a lump sum in 2022 instead of receiving their remaining basic payment scheme (BPS) on an annual basis. The BPS is the main rural grant to help the farming industry with applications between March and May and payments from December ( Such drastic changes will involve positive and comprehensive tax planning as part of a full succession review. Sadly the details of how exit...

If you or your firm subscribes to, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or '' for further assistance.

back to top icon