[HMRC Tax Bulletin 55, October 2001]

British Sugar and the NFU announced on 23 July a new, one off, scheme that allows sugar beet growers to relinquish all or part of their Contract Tonneage Entitlement. We have been asked about the taxation consequences for farmers who sell or buy Contract Tonneage Entitlement. We consider that the transactions are on revenue account, with the result that amounts received are taxable receipts of the trade and amounts paid are deductible in computing trading profits.

Why transactions are on revenue account

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