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Milking time

29 September 2009
Issue: 4225 / Categories: Forum & Feedback , Capital Gains
Dairy farmers who sold their milk to an organisation were owed money when it went into liquidation. They had also loaned money to it, but these loans had been converted into shares that are now worthless

I have two or three dairy farmers clients who were suppliers to Dairy Farmers of Britain (DFOB). They have March year ends. My question is as follows.

First if payment for milk supplied had not been received as at 31 March 2009 is there any way that I can claim relief in the accounts to March 2009 given that DFOB went into administration after this date in June 2009?

Second and more importantly the farmers have built up substantial members’ investments in DFOB in recent years by compulsory deduction from the monthly milk cheque. The purpose of these loans was to provide funds for the activities of DFOB.

In the farmers’ accounts milk sales have been credited and investment on the balance sheet debited accordingly. Is there any way of revisiting these years to deduct the capital retention from profits?

Ordinarily I know that the...

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