Not a wasting asset

Although the milk quota scheme was originally set up for only a limited period, we do not regard quota as a wasting asset, TCGA92/S44. A producer holds quota to produce and sell milk profitably and will continue to do so for as long as the scheme lasts. There was no expectation, therefore, either in 1984 or at any later date, that quota had a finite life of less than 50 years.

Partnerships

Milk quota allocated to a holding farmed in partnership is regarded as a partnership asset. Any consideration received on a disposal of quota will, therefore, be allocated among the partners in accordance with the normal rules for partnership assets, see CG27350.

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