UK Single farm payment taxation

[DDWYLAN]

Can anyone advise me, if I sold all the Single Farm Payment Entitlements that were allocated when the scheme was introduced, and paid any Capital Gains Tax, and then purchased new Single Farm Payment Entitlements of a different value in the same Tax Year, but not neccessarily in the same Accounting Year, which ends on 31st March, could I then, as it appears Limited Companies can do, write them off over their percived usefull life against Tax (Amortisation).

I have searched on line, but cannot find a definitive answer, and my Accountant is non-commital.

Any advice would be appreciated.

 

[Truemanbrown]

When you were allocated the payment entitlements they should not have been recognised as an asset in the company accounts.

However, when you purchase payments entitlements they should be capitalised and shown in the accounts of the company as an intangible asset at the lower of tax and net realisable value if we assume that there is an intention to match against eligible land and generate an annual single farm payment.

With respect to the tax treatment, the sale of the entitlements should come within intangible assets regime. This means the company can claim rolllover relief if the proceeds from the original sale of entitlements is rolled over into the purchase of new entitlements.