Revenue Note for Guidance

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Revenue Note for Guidance

657B Restructuring and diversification aid for sugar beet growers


This section deals with the taxation of payments, made in 2007 and expected to be made in 2008 to certain sugar beet growers, under the EU Restructuring and Diversification Aid for the sugar industry.

These payments to abandon sugar beet production are based on an estimate of lost income streams extending up to 12 years into the future and although the payments are correctly chargeable to income tax some growers could be pushed into the higher rate bands in the year these payments are made.

This section ensures that the payments can be averaged over 6 years, beginning in the year in which the payment is made. The beet grower makes an election for the averaging tax treatment with his/her tax return for that year. Once the grower has opted in they cannot subsequently opt out. This is to ensure that all the income received will eventually be taxed.


This section is concerned with the taxation arrangements for the restructuring aid being paid to certain sugar beet growers.

The section comprises 6 subsections as follows:

(1) The following 2 definitions are set out:

specified individual” essentially means a person who is engaged in farming for 2007 or a later year of assessment,

specified payment” means a payment to a specified individual under EU Council Regulation 320/2006 (as amended by EU Council Regulation 1261/2007) which would, apart from this section, be chargeable to tax as part of the trade of farming for 2007 or a later year of assessment.

(2) A specified individual must elect to have any specified payment treated in accordance with subsections (3) to (6) instead of being chargeable to tax in the year of receipt. The election will be in such form and contain such information as the Revenue Commissioners may require.

(3) Once the election is made, then any specified payment which would otherwise be chargeable for that year of assessment will be ignored and instead be treated as arising in 6 equal instalments, the first in that year and the balance spread over the following 5 years.

(4) Where a trade of farming is permanently discontinued then any uncharged amounts are immediately chargeable under Case IV of Schedule D in the year of discontinuance.

(5) The election must be made by notice in writing on or before the normal return date for the year of assessment. In other words by 31 October 2008 for 2007.

(6) Once the election is made it cannot be altered or varied during the 6 year period to which it relates.

Relevant Date: Finance Act 2021