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HMRC internal manual

Business Income Manual

Farming quotas: milk quotas

Milk quotas were introduced in the UK and other EC Countries in 1984 as a method of reducing over-production of milk. Essentially a milk quota allows a farmer to produce up to a given quantity of milk from his or her holding in any one year without the risk of having to pay `supplementary levy’ (see BIM55340).

Transfers of milk quotas

There are very active markets in both the sale (see BIM55315) and the leasing (see BIM55320) of milk quotas. The leasing period is normally the year ending 31 March. They will be accounted for under the usual accounting principles.