UK vineyards included in tax relief scheme

Winemakers in the UK will be able to benefit from income tax changes for the country’s farmers, allowing them to average their tax over five years.

Harvesting in an English vineyard. The move extends the time that vineyard owners can average their profits for tax purposes (Photo: Wiki)

The measure, announced in March’s budget, extends from two to five years the period over which farmers are able to average their profits before income tax is deducted.

For those planting vines for wine production this means that they will be able to account for the unproductive period when the vines are taking root. It takes roughly seven years for vines to become fully productive.

However, there was initial uncertainty as to whether vineyards were included in the scheme. The Wine and Spirit Trade Association (WSTA) met with Liz Truss, the environment secretary, to request clarity over the matter on 11 June.

Following a Parliamentary Question placed by Tim Loughton MP, who was last month re-elected as the chair of Parliament’s cross party Wine and Spirit Group, the government have confirmed that vineyards will be included.

The chair of the All Party Parliamentary Wine and Spirit Group, Tim Loughton MP, welcomed the news, saying: “I am delighted the government has confirmed that income tax averaging will apply to UK vineyards and I am thankful to the WSTA for bringing this to my attention.

“This is a real boost for this blossoming Great British industry which is now taking on some of the best established wines across the world,” he said.

Miles Beale, chief executive of the WSTA, said the measure will help winemakers who “face significant ups and downs”, and it will “help to ensure the health of vineyards across the UK.”

He also confirmed that the WSTA would be contacting eligible vineyards to make them aware of the scheme.

Rathfinny Estate owner Mark Driver said the move “will really help to offset those tough years” waiting for vines to become productive.