Readers' forum: Rural payments

29 January 2019

Issue: 4681 / Categories: Forum & Feedback

Tax liability on income from the Rural Payments Agency.

We act on behalf of several clients who although no longer actively farming receive payments from the Rural Payments Agency under the basic payment scheme. I understand that to qualify for this they need only maintain the land in good order and keep it available for agricultural purposes in the future.

Historically we have disclosed the income on the clients’ self-assessment tax returns as ‘other income’. Although it hardly seems to qualify as trading income I have started to wonder whether it might qualify for the £1 000 property income allowance?

Query 19 299– Mr Jones.

REPLY BY BRAMBLE

The SPS income will be chargeable as miscellaneous income

The basic payments scheme (BPS) replaced the single payment scheme (SPS) in January 2015. Farmers and land managers apply for the BPS annually in May with payments being made from the following December. To claim the BPS farmers and land...

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