BIM55151 - Farming: receipts and expenses: grants and subsidies: general

There is a wide range of grants and subsidies which farmers may be eligible to receive from both governmental and non-governmental bodies.

In the period after the Second World War, grants were given to improve efficiency and encourage agricultural production (including, for example, grants to grub up hedges). In recent years there have been surpluses and the emphasis has changed to limiting production (for example, by set- aside) and improving the environment (including, for example, planting of hedges).

The range of available grants, and the rules relating to any particular grant, are subject to frequent change. These paragraphs do not therefore set out to provide details of the rules or the tax treatment of particular grants (except for a small number of grants that have been found to cause doubt or difficulty - see BIM55165). Instead, pointers are provided towards the general principles by which you should be able to determine the correct treatment of any particular grant.

Some of the more common grants and subsidies are described on the farming training course.