Notification of business inheritance, merger or split
*Please note. This is an archive page and the guidance is for reference purposes only. For further information on anything contained here, please contact your local area office.*
Date published: 30 March, 2015
Businesses that have received a holding, or part of one, by way of inheritance or that have been involved in a business merger or split (scission) between 16 May, 2013 and 15 May, 2015 must complete a notification form and submit it to RPID by 15 June, 2015.
The reason for notifying us is to make sure the right to an allocation of entitlements and the value of Single Farm Payment Scheme (SFPS) payment entitlements held on 15 May, 2014 is correctly assigned to businesses.
Please read the guidance below on when you must notify us and you can also download the correct form to complete and return to:
Rural Payments and Inspections Division
Direct Payments Team
Edinburgh EH11 3XD
If you have received a holding or part of a holding by way of inheritance, you are entitled to claim the number and value of the Basic Payment Scheme entitlements to be allocated to the holding received under the same conditions as the farmer originally managing the holding.
A merger is where two or more separate businesses join together into one new business controlled in terms of management, benefits and financial risk by the business originally managing the holdings or one of them. This will have no impact on the total number and value of Basic Payment Scheme entitlements to be allocated to the holding.
Business split (scission)
A scission occurs when, a business is split, creating either:
- at least two new separate businesses, of which at least one remains controlled in terms of management, benefits and financial risk by one of the persons (legal or natural) who managed the original business
- at least one new business, the other one remaining controlled in terms of management, benefits and financial risks by the original business.
The number and value of Basic Payment Scheme entitlements to be allocated will be based on the proportions in which the original business was split.
Change in denomination or legal status
If there is a change in denomination (change of name) it will have no impact on the number or value of Basic Payment Scheme entitlements allocated to the business.
If there is a change in legal status it will have no impact on the number or value of Basic Payment Scheme entitlements allocated to the business provided that the person who was in control of the original holding in terms of management, benefits and financial risk also manages the new holding.
REMEMBER: If you have inherited a holding or part of it, or been involved in a business merger or split between 16 May, 2013 and 15 June, 2015, you must notify us by 15 June, 2015 to allow the correct allocation of Basic Payment Scheme entitlements to be made.