Cg77901 - europe: milk quota: quota as a fungible asset: a fungible asset - hmrc internal manual
Cg77901 - europe: milk quota: quota as a fungible asset: a fungible asset - hmrc internal manual"
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CG77901 - EUROPE: MILK QUOTA: QUOTA AS A FUNGIBLE ASSET: A FUNGIBLE ASSET Any milk quota allocated to a particular producer is what is referred to as a `fungible’ asset. This is an asset
which grows or diminishes as parts are acquired or disposed of but the individual parts cannot be identified separately. To transfer quota from one producer to another, there will normally
be a transfer of part of the first producer’s holding. If this is a permanent transfer, that is, a sale, and that land is used for milk production, the land becomes part of the second
producer’s holding. If it is a temporary transfer, for example, a short-term let, and the land is not used for milk production, the land remains part of the first producer’s holding. In
either event, an amount of quota is transferred from one holding to another. However, other than in exceptional cases it will not be possible to identify the quota disposed of with any
particular amount previously acquired by the transferring producer. Equally, it will not be possible to separately identify that quota from other quota held by the transferee producer after
it has been acquired by them from the transferor. Previous page Next page Print this page
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