New queries, issue 4678

Rural payments

Tax liability on income from the Rural Payments Agency.

We act on behalf of several clients who although no longer actively farming receive payments from the Rural Payments Agency under the basic payment scheme. I understand that to qualify for this they need only maintain the land in good order and keep it available for agricultural purposes in the future.

Historically we have disclosed the income on the clients’ self-assessment tax returns as ‘other income’. Although it hardly seems to qualify as trading income I have started to wonder whether it might qualify for the £1 000 property income allowance?

Readers’ views would be...