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HMRC internal manual

Capital Gains Manual

Compensation: displaced tenants: exempt payments to farmers

TCGA92/S249

TCGA92/S249 provides that any payment received by a farmer under Section 27 AgricultureAct 1967 is to be ignored for Capital Gains Tax purposes. Payments under this section ofthe Agriculture Act 1967 are made to farmers who give up occupation of uncommercialagricultural units.

Payments received by smallholders under the Agriculture Act 1970 also fall within Section27 of the Agriculture Act 1967 and are therefore exempt from Capital Gains Tax underTCGA92/S249.