Abstract: UK agricultural subsidy policies are very important measures to regulate and control the development of agriculture. They play an important role in agricultural production, supporting farmers’ income, protecting rural environment, and advancing the sustainable development of modern agriculture. This paper studied UK agricultural subsidy policies by discussing the main subsidy programs including the Single Payment Scheme, the Basic Payment Scheme and Rural Development Schemes. Then, this paper analyzed the static and dynamic payment structures of UK agricultural subsidy. And finally, this paper examined UK agricultural subsidy policies in environment-protection and agricultural development and cultivating young farmers and implementing policies in different regions. Results show that UK agricultural subsidy policies emphasized on sustainable and multifunctional agriculture. Besides, the UK government promoted the sustainable development of agriculture and protected rural environment by binding the subsidy amount with the levels that farmers finish “Green Rule” and “Cross Compromise”. And finally, the majority of direct payments to farmers from the Government were not linked to production and the sum of direct payments to farmers were declining. Therefore, China should promote the marketization of agricultural production by increasing direct payment, guide the protection of environment and the development of agricultural production, cultivate young farmers by using proper agricultural subsidy polices, and implement different polices according to the regional distinctions.