Policy paper
Taxation of Lump Sum Exit Scheme payments
This measure intends to clarify the tax treatment of payments received under the Lump Sum Exit Scheme.
Documents
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.
Published 15 March 2023