HMRC give tax boost to vineyard owners
Vineyard owners are raising a glass to HM Revenue & Customs over new rules that allow them to pass on land where grapes — or apples for cider — are grown, free of inheritance tax.
In an update to its guidance notes on what constitutes agricultural use of land for inheritance tax purposes, the tax office has extended its definition of food to include fruit used to make wines and ciders. This means that the value of the land will be up to 100 per cent tax-free when left in an estate.
This follows news revealing that the area under vine in Great Britain has increased by 160% in the past 10 years to reach 7,000 acres (2,888ha), according to trade organisation WineGB.
In recent years there has been an ambitious vine planting programme in England and Wales with 1.6 million vines were planted last year, with a further 2 million expected in 2019.
WineGB states that it, in line with current trends, it projects that volumes will increase to some 40m bottles per annum by 2040. By the same year, it expects wine tourism to generate additional revenue of £658 million a year, with an increase in employment in the sector from 2,000 to 24,000.