Services tailored to you...
With over five decades’ experience serving a diverse range of clients in the South West, we possess an unbeatable depth of knowledge across a wide range of industry sectors.
Our specialist partners and teams can provide expert advice on everything from farming and agriculture, to military tax allowances. We’re here to help you make the most of your planning opportunities so that you can grow with confidence.
BPS entitlements – don’t lose the loss
2023 was the final year for Basic Payment Scheme (BPS) subsidy based on entitlements.
The subsidies for 2024 to 2027 are ‘delinked payments’, based on historic BPS receipts (less a reduction factor) rather than the area of land or number of entitlements held. Therefore, from the 15 May 2023 closing date for 2023 claims, entitlements are worthless.
This gives some farmers the opportunity to claim a capital gains tax (CGT) loss on:
The historic cost of purchased entitlements.
The probate value of inherited entitlements.
Any CGT base cost on gifted entitlements.
Relief cannot be claimed on entitlements that were allocated free of charge to you or to another person who gifted them to you with holdover relief.
Our experience is that most farmers do not have a CGT loss to claim, but a sizeable minority do.
Capital gains tax negligible value claim
Where entitlements have a CGT cost, a negligible value claim can be made in the 2024 tax return and the loss will then be available for offset against capital gains of 2023/24 onward.
If you have any questions, or require any assistance, get in touch with a member of our team.