§ Mr. DrewTo ask the Chancellor of the Exchequer whether the disposal of entitlement under the introduction of single farm payments will be subject to capital gains tax. [169329]
§ Ruth KellyImplementation and administration of the single farm payment scheme is the responsibility of the Department for Environment, Food and Rural Affairs, in England, and the devolved administrations. Under general taxation principles, the tax treatment of any single farm payment to which an individual is entitled will depend upon the precise nature of the payment. However, from the information currently available, the Inland Revenue considers that the disposal of an entitlement to receive a single farm payment will normally be the disposal of a chargeable asset for capital gains tax purposes, and that the extinguishing of an entitlement to receive agricultural subsidies will also be a disposal for capital gains tax purposes.