188ÌåÓý

S5, S9, S25 and S687 Income Tax (Trading and Other Income) Act 2005, S996 Income Tax Act 2007,
S35, S36, S46 and S979 Corporation Tax Act 2009, S1125 Corporation Tax Act 2010Ìý

The delinked Direct Payments are in place of the BPS payments and linked to the fact the recipient is/was a farmer
and would therefore be subject to the income tax rules, (depending on each recipient’s circumstances), either:

Ìý Ìý Ìý Ìý Ìýi)Ìý Ìýas trading receipts of an ongoing business or

Ìý Ìý Ìý Ìý Ìýii)Ìý post cessation receipt
Ìý Ìý Ìý Ìý Ìý Ìý Ìýreceipts arising from the carrying on of a trade which are received after a personÌýpermanently
Ìý Ìý Ìý Ìý Ìý Ìý Ìýceases to carry on a tradeÌýand arises from the carrying on of the trade before the cessation.

Ìý Ìý Ìý Ìý Ìýiii) or miscellaneous income
Ìý

In summary, the de-linked payments (same as BP scheme) may be taxable under:Ìý

Ìý Ìý Ìý Ìý Ìý i)Ìý Ìýsection 9 ITTOIA 2005 (farming),

Ìý Ìý Ìý Ìý Ìý ii)Ìý section 10 ITTOIA 2005 (non-farming trade), or

Ìý Ìý Ìý Ìý Ìý iii) Chapter 8 of Part 5 of ITTOIA 2005 as miscellaneous income.

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