Receiver appointed to Dairy Farmers of Britain co-opererative
HMRC have released details of the tax treatment that will be available to the members of Dairy Farmers of Britain (DFB) in respect of their shares and debt in the company. This follows the appointment of a receiver to the DFB which was an agricultural cooperative with 1,800 member farmers. It was responsible for almost 10% of the UK’s milk production.
The new publication, a ‘Business Brief’ is targeted at members who trade as individuals. The treatment of corporate members is not specifically covered and the rules are different in many respects.
The Business Brief provides limited guidance across the following issues:
- Income Tax treatment;
- Treatment of shares in DFB;
- Types of debt for Capital Gains Tax purposes;
- DFB’s debts;
- Loan Stock;
- Member’s Liability Loans, the Member Capital Accounts and the Member Investment Accounts;
- Conversion of debt into ‘A’ Ordinary Shares.
There is also a short Q&A section with answers to over a dozen questions in relation to the collapse of the DFB and the tax treatment of its members.