Policy paper

Lump Sum Exit Scheme: taxation of payments

This measure intends to clarify the tax treatment of payments received under the Lump Sum Exit Scheme.

Documents

Draft legislation

Request an accessible format.
If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email different.format@hmrc.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

Explanatory note

Request an accessible format.
If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email different.format@hmrc.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

Details

This measure will apply to you if you are leaving or retiring from farming and have applied for a payment under the Lump Sum Exit Scheme managed by the Rural Payments Agency.

This measure clarifies that the payment, and any interim payment received, will be treated as a capital receipt provided you meet the scheme’s eligibility criteria. If you do not meet the eligibility criteria the payment will be treated as income.

Updates to this page

Published 20 July 2022

Sign up for emails or print this page