Basic Payment Scheme (BPS) Transfer of Entitlements Guidance
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1 Basic Payment Scheme (BPS) Transfer of Entitlements Guidance Important - please read this carefully June 2018
2 Digital ISBN Crown copyright 2018 ii
3 Contents Subject Page Number Introduction 2 How to notify the Welsh Government of a Transfer of Entitlements 2 Active Farmer Requirements 2 Notification Period 3 BPS Usage Rules 3 Documentary Evidence 3 Surrender of Entitlements 3 Termination / Extension of Lease agreement 3 Withdrawal of Notifications 4 Recovery of Incorrectly Allocated Entitlements 4 Confirmation 5 Appeals Procedure 5 Complaints Procedure 6 Contacts 6 1
4 Introduction Farmers who were allocated BPS entitlements in 2015 can transfer those entitlements from 2016 onwards. You can transfer BPS entitlements by Sale; Lease or via Inheritance, and can do so with or without land. For the Transfer of Entitlements by Sale or Lease to be valid the recipient of the entitlements must meet the Active Farmer requirements at the time of transfer. The Active Farmer requirement does not apply to entitlements transferred via Inheritance. You can own or lease entitlements anywhere in the UK, but entitlements that have been established in Wales, England, Scotland or Northern Ireland can only be used to claim payment in that country (or region within that country). Transfers between farmers, in different member states, can only take place through actual or anticipated inheritance. The entitlement concerned can only be used in the member state where they were allocated. How to notify the Welsh Government of a Transfer of Entitlements The Transfer of Entitlements notification is only available online and must be accessed via your RPW Online account. If you are not yet registered with RPW Online and do not have an activation code, then please call the Customer Contact Centre. Guidance on registering with RPW Online is available at If you need additional support to access RPW Online, there is help available. This help includes access to a computer and one to one support at an RPW office. The Customer Contact Centre telephone number is (Open 8.30 to Monday to Thursday and 8.30 to on Friday). The Welsh Government will carry out checks to determine whether the transfer is appropriate, before either refusing or authorising the request. The notification must be submitted by the seller/lessor of the entitlements. If you are using an Agent or Auctioneer to transfer the entitlements for you and you want them to be able to submit the notification you will need to confirm through your RPW online account that you are giving them the necessary online roles to do this. The minimum roles required to submit the notification are Manage Entitlements and Submit Claims. The following links provide information on online roles and how to set them up: Active Farmer Requirements The recipient of entitlements transferred by sale or lease must be a farmer and meet the Active Farmer requirements at the time of transfer. The Active Farmer requirement does not apply to entitlements transferred via Inheritance. If the recipient met the definition of a farmer and met Active Farmer requirements for the 2018 scheme year, we will consider that the requirements were met on the date the transfer took place in order to process the transfer. However, if the recipient s 2
5 circumstances in relation to the Active Farmer requirement have changed since submitting the SAF 2018, they should notify us in writing of the change. We will carry out additional checks on the recipient s 2019 SAF to ensure they continue to meet the definition of a farmer and the Active Farmer requirements. If the recipient did not submit a SAF 2018 or failed the definition of a farmer or Active Farmer requirements, as part of the validation process of the transfer of entitlements they will be sent an Active Farmer proforma. In the event of the recipient of the entitlements (transferred as a Sale or Lease) not meeting the Active Farmer requirements then the transfer will not be valid. The entitlements will return to the seller/lessor and it is their responsibility to ensure that they meet the relevant usage requirements for those entitlements or they will transfer to the National Reserve. For further details on the definition of a farmer and the Active Farmer requirements please refer to the 2018 SAF Rules Booklet available through this link: Notification Period Trading can take place at any time of the year, but the Welsh Government must be notified by 30/04/2019 in order for the recipient to make a claim on entitlements they are receiving for the 2019 scheme year. Transfers submitted on or after 01/05/2019 will be processed but will not be available to the recipient until the following scheme year. BPS Usage Rules All BPS entitlements, including those allocated from the National Reserve are subject to the same two year usage rules. For further details on the usage rules please refer to the 2018 SAF Rules Booklet available through this link: Documentary Evidence If you are transferring entitlements via inheritance you must provide documentary evidence if this has not already been submitted. For example, a grant of probate with a copy of the will, or evidence of transfer following intestacy. Surrender of Entitlements You may surrender your entitlements at any time. For example, you may choose to do this if you have given up farming. If you wish to surrender your entitlements, please use your RPW Online account or write to the Customer Contact Centre providing the details and explaining what you want to surrender. Termination / Extension of Lease agreement Where entitlements have been leased, they will automatically revert to the lessor at 3
6 the end of the lease agreement. If the lease ends early, or is to be extended, the lessor must inform RPW in writing through their RPW Online account or by writing to the Customer Contact Centre. When a lease of entitlements ends, those BPS entitlements are returned to the lessor, providing they are an active farmer. Where the lessor intends to undertake agricultural activities they can submit a Single Application Form in order to claim those BPS Entitlements. If the lessor is not an active farmer the entitlements will revert to the national reserve when the lease ends. If returned BPS Entitlements are not activated in full at least once in any two year period following the end of the lease, some or all of those BPS Entitlements will be clawed back and be lost to the National Reserve, beginning with the lowest value. Withdrawal of Notifications If a seller/lessor wishes to withdraw or amend a request to transfer entitlements they can do that, providing the transfer has not been confirmed. To do this they will need to provide their Customer Reference Number (CRN), the details of the entitlements to be transferred and the amended details, or clearly state that they wish to withdraw their request. If the request is received after the transfer of entitlements has taken place, we will not reverse the transfer. Recovery of Incorrectly Allocated Entitlements You will have to surrender BPS entitlements that have been transferred to you if: The entitlements should not have been allocated, e.g. the transferring farmer has not activated all their BPS Entitlements at least once during the previous two years; Checks reveal the farmer you received entitlements from has not complied with the BPS scheme rules, including undertaking sufficient agricultural activities or failing active farmer checks. The farmer receiving the entitlements will also be required to pay back any undue payments received from the entitlements whilst they were in their possession. If you are leasing entitlements to another farmer, and that farmer does not meet the usage rules for those entitlements, the entitlements will be clawed back and lost to the National Reserve, beginning with the lowest value. Those BPS Entitlements will not then be available to revert to the lessor at the end of the lease. If you are thinking about transferring entitlements you are advised to seek independent professional advice about the best way to protect your position in this 4
7 type of situation. Transfers are private arrangements between farmers. The Welsh Government does not accept any responsibility for any losses incurred by Transferors/Lessors or Transferees/Lessees. Confirmation A letter will be sent to both the seller/lessor and the recipient, to confirm that the transfer of entitlements has taken place If the seller/lessor has not yet been paid 2015 BPS their entitlements are considered to be in a draft status and the transfer will not be confirmed until after a partial or full payment has been made to the seller/lessor. In the case of transfers of entitlements by lease, a notification will be sent to both parties the year before the lease end date as a reminder that the entitlements will revert to the seller/lessor unless further arrangements are put in place to renew the lease. Appeals Procedure The appeals process in Wales allows you access to an independent appeals procedure if you feel that the Welsh Government did not reach the correct decision according to the rules for the following schemes: BPS (including Young Farmer), SPS, and Glastir. Decisions taken in respect of issues identified after 1 January 2007 for the following schemes will also be eligible for review under this process: Tir Cynnal (including Transitional Arrangements), Tir Gofal (including extensions), Farm Woodland Scheme, Farm Woodland Premium Scheme, Improved Land Premium, Organic Farming Scheme, Organic Farming Scheme Transitional Arrangement, Organic Farming Conversion Scheme, Environmentally Sensitive Areas, Habitat Scheme. The appeals process consists of two stages: Stage 1: review by head of the local office Stage 2: review by an Independent Appeals Panel (if you are dissatisfied with the Stage 1 response). The Independent Panel make recommendations to the Deputy Minister for Farming and Food who then takes the final decision. The appeals process is concluded after the Deputy Minister s decision has been issued. There is no charge for Stage 1 of the process but there is a charge at Stage 2-50 for a written hearing or 100 for an oral hearing. These charges are repaid in full if the Stage 2 appeal is either partially or fully successful. Appeals must be received within 60 days of the date of the letter outlining the decision you wish to appeal against. 5
8 Further details of the appeals process can be obtained from your DO. Complaints Procedure Complaints will be dealt with under the Welsh Government s Code of Practice on Complaints. Further advice on how to make a complaint can be obtained from the Customer Contact Centre or Welsh Government Complaints Unit Crown Buildings Cathays Park Cardiff CF10 3NQ Tel: complaints@wales.gsi.gov.uk You may also choose to contact: Public Services Ombudsman for Wales, 1 Ffordd yr Hen Gae, Pencoed, CF35 5LJ Tel: Website: Contacts RPW Online Access the RPW Online service via the Government Gateway at or once you have enrolled for the RPW Online service, access it via To request access to RPW Online or, if you have any queries on using the online system, please call the Customer Contact Centre on (Monday - Thursday , Friday ). Farmer Enquiries Customer Contact Centre Your first point of contact for all telephone enquiries and correspondence should be the Customer Contact Centre where staff are on hand to provide information and answer queries. The Customer Contact Centre is open between 08:30 and 17:00. The contact details for the Customer Contact Centre are as follows: Tel: Fax: rpwonline@wales.gsi.gov.uk PO Box address: Rural Payments Wales, PO Box 1081, Cardiff, CF11 1SU 6
9 Regional and Area Offices Offices at Aberystwyth, Caernarfon, Carmarthen and Llandrindod Wells will continue to be open for visitors between 09:00 and 16:30 Monday to Friday. Area offices are open less frequently to visitors and so farmers are advised to check our website or ring the Customer Contact Centre on for opening hours. Caernarfon Divisional Office Government Buildings Penrallt Caernarfon LL55 1EP Carmarthen Divisional Office Government Buildings Picton Terrace Carmarthen SA31 3BT Llandrindod Wells Divisional Office Government Buildings Spa Road East Llandrindod Wells LD1 5HA Aberystwyth Arae Office Welsh Government Rhodfa Padarn Llanbadarn Fawr Aberystwyth Ceredigion SY23 3UR Newtown Area Office Ladywell House Park Street Newtown SY16 1JB Llandudno Junction Regional Office Sarn Mynach Llandudno Junction Conwy LL31 9RZ Rural Payments Wales Welsh Government West Core 4th Floor Cathays Park Cardiff CF10 3NQ Access to Rural Payments Wales Offices for people with disabilities or special needs If you have any special needs which you feel are not met by our facilities contact the Customer Contact Centre on Welsh Government officials will then endeavour to make arrangements to accommodate your requirements. Welsh Government Website For all of the latest Agricultural and Rural Affairs information, visit the Welsh Government s website at By visiting the website, you can also sign up to receive the Rural Affairs e- newsletter which delivers the latest news directly to your inbox. Gwlad Gwlad is the Welsh Government s magazine for farm and forestry businesses and all those involved with agriculture and rural Wales. It contains news stories, guidance and information in an accessible, easy-to-read format. The 7
10 March/April 2016 edition of Gwlad will be the final one issued in hard copy. Following the final copy one of the ways that we will be communicating with you is through the Gwlad e-newsletter. To keep informed and up to date with all the latest agriculture news and developments in future we would encourage you to sign up to receive the Gwlad e-newsletter. You can do this either at or at: 8
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