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Contents

Official guidance
Business Income Manual

BIM55300 · Farming: quotas

  • BIM55301 · Farming quotas: general
  • BIM55305 · Farming quotas: quota is fixed capital asset
  • BIM55310 · Farming quotas: creation of quotas
  • BIM55315 · Farming quotas: purchase and sale of quotas
  • BIM55320 · Farming quotas: quota leasing
  • BIM55325 · Farming quotas: compensation for temporary suspension of quotas
  • BIM55330 · Farming quotas: compensation for permanent loss of quotas
  • BIM55335 · Farming quotas: milk quotas
  • BIM55340 · Farming quotas: supplementary levy
  • BIM55345 · Farming quotas: reduction in milk quotas
  • BIM55355 · Farming quotas: termination of tenancy
  1. Farming: quotas: contents
  2. Farming quotas: milk quotas

BIM55335 | Farming quotas: milk quotas

From HM Revenue & Customs · Business Income Manual

Milk quotas were introduced in the UK and other EC Countries in 1984 as a method of reducing over-production of milk. Essentially a milk quota allows a farmer to produce up to a given quantity of milk from his or her holding in any one year without the risk of having to pay `supplementary levy’ (see BIM55340).

Transfers of milk quotas

There are very active markets in both the sale (see BIM55315) and the leasing (see BIM55320) of milk quotas. The leasing period is normally the year ending 31 March. They will be accounted for under the usual accounting principles.

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