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Demise of milk quota

Demise of milk quota

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As of the end of March Milk Quota no longer exists so we have a negligible value position.

My question relates to what can we do with the loss if the quota is in a company?

Is it possible because of the class of asset that it is, to set the loss against the trading income of the accounting period?

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By BKD
08th May 2015 14:52

Usual answer - it depends

Would you like to provide some more information?

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By The Minion
12th May 2015 14:48

sorry settings changed to daily update not immediate!

Milk Quota is i understand an incorporeal heriditament and was either allocated when first introduced years ago, or bought from other farmers since then.

My client moved their dairy farming side to a company at the then market value of £100k. In the company accounts it is an intangible asset which was being amortised, just not amortised enough before quotas disappeared!

Now that quotas have been cancelled they have no value so the quota is going to be written off in the 30th April 2015 accounts.

My question is what can i do with the loss other than use it against gains in the same year and later years?

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By BKD
12th May 2015 15:20

You still haven't provided the vital information

Hint: 1 April 2002

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