Milk quotas have been abolished, after more than three decades of EU attempts to control dairy production, leaving Westcountry farmers with a tax deadline.
Milk quotas are now virtually worthless, but they can be claimed as an allowable tax-loss.
"Following the end of the quota system on 31st March, farmers can now pool individual units of milk quota to claim an allowable tax loss", said Gary Mackley-Smith, technical tax manager at West-based Top 40 accountants, Bishop Fleming.
"Whatever was paid for those milk quotas is now available as an allowable loss, but must be claimed in the tax return for the year ending April 2015, to be submitted by the end of January", said Mr Mackley-Smith.
While the abolition of the milk-quota system may result in milk-lakes and butter mountains, Mr Mackley-Smith urges Westcountry farmers to convert their abolished milk-quotas into a tax claim within the deadline.
"If farmers have not already made a claim for the scrapping of the milk-quota system, they now have a deadline for capitalising on their loss in their 2014/2015 tax return, which must be submitted by 31st January 2016", said Bishop Fleming's Gary Mackley-Smith.
"From now on, milk quotas should no longer be included in farm accounts: they will need to be written off", he added.
