Claw-back on the sale of Basic Payment Scheme entitlements without land was introduced in 2016 as provided for under the EU Regulation governing the establishment of rules for direct payments to farmers. This claw-back was introduced as a measure to discourage the sale of entitlements without land that had been allocated from the 2015 National Reserve at the national average value per entitlement. As the relevant EU regulation did not provide for claw-back to be applied exclusively in respect of entitlements allocated from the National Reserve, it was applied to the sale of all entitlements without land in 2016. There is no provision in the Regulations to apply claw-back to the sale of entitlements with land.
The level of claw-back to be applied to the sale of entitlements without land may be reviewed on an annual basis taking into account the relevant issues involved. Decisions in relation to the level of claw-back to be applied under the 2017 Basic Payment Scheme year will be made in due course.