Posted on 21st July 2022
Farmers considering leaving the industry only have until the end of September to apply for the Lump Sum Exit Scheme.
The scheme, announced by Environment Secretary George Eustice in a February press release, allows farmers to apply for up to £100,000 in return for relinquishing their entitlement to the Basic Payment Scheme and transferring their land.
If you’re thinking of applying, you need to meet the following criteria:
The amount of money you can apply for will be the average of your 2019-2021 Basic Payment Scheme receipts multiplied by 2.35 and is capped at £100,000.
If you own non-agricultural land and property (both residential and commercial), you can retain it under the scheme, along with up to 5ha of agricultural land.
You need to be aware that the payment you receive will be subject to capital gains tax or corporation tax, so seeking professional advice before applying is something we would recommend.
If you’d like to know more about the Lump Sum Exit Scheme, succession planning or any other rural business issue, please call us on 01522 696 496, email email@example.com or fill in our contact form.
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