Farming - milk quota
23/10/1989
Query
compensation for suspension of milk quota
Decision
Regarded as a capital receipt
Income Tax
Section 651, Taxes Consolidation Act, 1997
Origin: RLS Division
File ref:IT892037
12/03/1990
Query
How is the leasing of milk quota taxed?
Decision
The milk quota is treated as attaching to the land. Income from leasing of the quota would be assessable under the rules of Case V of Schedule D, i.e. on the profits arising in the year of assessment, and not on the profits received. If the agreement provides that the full amount of the payment in respect of the lease will arise (i.e. become payable) in the first year, then it will be taxed in that year. If the agreement provides that the amount will become payable over each of the five years, then it will be taxed accordingly.
Income Tax
Section 75, Taxes Consolidation Act, 1997
Origin: RLS Division
File ref:IT903004