Tue 22 Feb 2022
The Rural Payments Agency (RPA) has recently published details of the Basic Payment Scheme (BPS) Lump Sum Exit Scheme for those with farming interests who are wishing to leave and/or retire from the sector.
In summary, the three main headline points are:
The scheme’s value will be based on the 2019-2021 period and on a multiple of 2.35 times the average value of BPS claims in that period – capped at just short of £100,000.
Applications will be open from the end of April and close at the end of September this year (2022).
Successful applicants must retire their eligible farming operations from the current BPS regime by the end of May 2024.
Of course there are many other details regarding criteria, eligibility and nature of the BPS Lump Sum Exit Scheme - including that the lump sum payment will be subject to Capital Gains Tax (CGT).
The RPA is inviting those considering taking the lump sum offer ((https://www.gov.uk/government/publications/lump-sum-payments-for-farmers-who-leave-or-retire-from-farming-and-delinked-payments)) to request a forecast statement. It will begin to issue these this month (February), once requested.
With BPS ending by 2027 and details of some replacement schemes, such as ((https://www.shoulers.co.uk/articles/sustainable-farming-incentive-sfi)) SFI, ((https://www.shoulers.co.uk/articles/more-detail-key-to-unlock-new-payment-schemes-under-elms-umbrella)) LNR & LR under the ELMS umbrella being published by Defra only in the past few months, there is a lot to consider in a short space of time.
Shouler & Son believes farming operators considering applying for the BPS Lump Sum Exit Scheme should take independent, expert advice sooner rather than later.
For more information on Shouler & Son’s rural services and professional advice on eligibility for this or any of the new Defra funding schemes under ELMS, contact Angela Wood, email email@example.com, tel 01664 560181 or see shoulers.co.uk/pages/agricultural-services.