»Ê¹ÚÌåÓýapp

As explained in the Business Income Manual (see BIM53005+) various quota systems operate within the UK farming industry to regulate production, or the entitlement to, production subsidies. Examples include -

• Milk quota (see CG77820+)
• Fish quota (see CG78120)
• Ewe and Suckler Cow Premium quota.

More detailed guidance on the CG treatment for certain quotas is referred to above but the following general principles will normally apply:

• »Ê¹ÚÌåÓýapp quota is an asset for CG purposes
• »Ê¹ÚÌåÓýapp asset is a fungible asset

• »Ê¹ÚÌåÓýappre are special identification rules for fungible assets in Sections 104+ TCGA 1992 and you will find detailed guidance on these at:

  • CG50524+ dealing with the rules which operated between 6 April 1982 and 31 March 1985
  • CG50530+ dealing with the rules which were introduced with effect from 1 April 1985 and which continue to apply to corporate producers for acquisitions or disposals on or after 6 April 1998
  • CG50564+ dealing with the rules which apply to individual producers for acquisitions or disposals on or after 6 April 1998 but before 6 April 2008
  • CG manual appendix 10 dealing with the rules which apply to individual producers for acquisitions or disposals on or after 6 April 2008.

»Ê¹ÚÌåÓýapp asset is an intangible asset and so for a company it will fall within the Corporate Intangibles regime. »Ê¹ÚÌåÓýapp rules in CTA09/PART8 normally only apply to intangible fixed assets created or acquired by a company on or after 1 April 2002 (‘commencement dateâ€�). Detailed guidance on the Corporate Intangibles regime is within the Corporate Intangibles and Research & Development Manual see CIRD10100+

If you are dealing with a case which involves a topic not covered by these instructions, or elsewhere in the manual Capital Gains Technical Group will be happy to look at it if it cannot be resolved otherwise.