Revenue Tax Briefing

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Revenue Tax Briefing Issue 64, August 2006

Single Payment Scheme (Farming)

Election Under Section 657A TCA 1997

Election to treat certain farm subsidy payments received in 2005 as arising in 2005, 2006, and 2007.

Section 657A(2) TCA 1997 contains a provision whereby an individual who receives a subsidy in 2005 under any of the schemes listed below, and who also receives a single payment for 2005 (thereby resulting in both amounts becoming taxable in 2005), may elect to spread the subsidy over three years, 2005, 2006, and 2007 ( Tax Briefing 61 refers).

Schemes covered by Section 657A:

Special Beef Premium Schemes

Suckler Cow Premium Scheme

Ewe Premium Schemes

Extensification Payments Scheme

Slaughter Premium Schemes

Arable Aid Schemes

National Envelope Top-Ups


An election under this section must be made on or before the 31October 2006. This election, which will in general be made at the time the 2005 return is submitted, should be made as follows:

Paper Filers

An election form - Election Under Section 657A TCA 1997 - available on under claim forms - should be completed and submitted with the return of income.

Alternatively the election, using the wording contained in the Election Form (reproduced below), can be included in a covering letter with the return.

ROS Filers

The election, using the text from the election form (reproduced below) should be made in the Additional Notes section of the Accounts Menu. A paper election is not required from ROS filers.

Text for inclusion in ROS form/covering letter; this text can be suitably amended where the form or letter is not submitted by the customer.

I elect under Section 657A(2) TCA 1997 to have the aggregate of all ‘relevant payments’ received in 2005 treated as arising in three equal instalments in the years 2005, 2006, and 2007. I have made the appropriate adjustment to profits for 2005 and will do likewise for 2006 and 2007. I understand that this election cannot be altered and is irrevocable.