Taxes Consolidation Act 1997 section 657B

Restructuring and diversification aid for sugar beet growers

Section 657B (now repealed) provided for the spreading of sugar beet restructuring payments, received in 2007 and 2008 under the EU Restructuring and Diversification Aid, over six years for income tax purposes.

• Payments made to qualifying sugar beet growers under EU Council Regulation 320/2006 (as amended), which compensated for estimated lost income over up to 12 years, could be spread equally over six tax years instead of being taxed in full in the year of receipt.
• The grower had to elect for this spreading treatment in writing by the return filing deadline for the relevant year of assessment (e.g. 31 October 2008 for 2007).
• Once the election was made it was irrevocable and could not be altered or varied during the six-year spreading period, ensuring that all of the income would eventually be taxed.
• If the grower permanently discontinued farming before the six-year period expired, any remaining untaxed instalments became immediately chargeable under Case IV of Schedule D in the year of discontinuance.