BIM55325 - Farming quotas: compensation for temporary suspension of quota

Any compensation received for the temporary suspension of all or part of a farmer's quota is effectively compensation for loss of profits. The sums received are treated as trading receipts of the farming business for as long as the farmer continues to trade, or assessed under Case VI if the farmer ceases.

`SLOM' PRODUCERS

As regards compensation paid to certain producers (`SLOM' producers) who were temporarily deprived of quota when the milk quota scheme was first set up, see the article in Tax Bulletin, Issue 11 (May 1994).