07/03/07 - Transferring ENG RES entitlements following merger or scission
Following a recent change to EU legislation it is now possible to transfer National Reserve (ENG RES) entitlements between businesses which are subject to a merger or scission. In these cases an RLE1 form should be completed, and submitted to RPA within the deadlines shown below.
Before the transfer can be actioned the business change must be agreed by the RPA as a legitimate amalgamation of two or more businesses, or the split of one business into two or more separate businesses.
Farmers who have Normal entitlements remain unaffected by these legislative changes.
Transfer of Single Payment Scheme entitlements following the merger or scission of businesses and the transfer of National Reserve (ENG RES) entitlements.
Where, because of a businesses merger or scission (split), farmers wish to transfer entitlements in time for the 2007 scheme year, an RLE1 (Transfer of Entitlements form) must be received by the RPA no later than the dates shown below. Any RLE1 forms received after these dates will be processed for the 2008 scheme year.
When completing the form, at Section B1 a cross should be placed in the box ‘Sale/gift of entitlements without or with land’. It is also important to write ‘merger’ or ‘scission’ next to the box, dependant upon the change to the business. Applicants must also enclose a letter clarifying the change in business structure. The form must be received by the RPA no later than
2 April 2007.
If the application also includes land required to support a Single Payment claim for the 2007 scheme year the RLE1 form must be received by the RPA no later than 19 March 2007. This is because of the need for the land to be part of the transferee’s holding by 30 April 2007 in order to meet the 10 month rule.
Page published: 7 March 2007