Dairy farmers should be thinking of making tax claims if they have milk quota

The system of farming milk quota was abolished on 31 March 2015. Some dairy farmers will have previously purchased their milk quota allocation, and they should be thinking about making a “negligible value claim” to claim a capital loss on their corporation tax or individual tax returns. Such a loss can be used in the same or future years against profits on other capital disposals. Some farmers who were originally allocated their milk quota in the 1980’s won’t be able to claim a capital loss, as they will not have paid for their milk quota in the first place.

For further information please contact a member of our tax team on 01904 464100 or enquiry@garbutt-elliott.co.uk.