Inheritance rule change on UK Vineyard land

Earlier this year HMRC clarified its guidance on Agricultural Property Relief (APR) which confirms land on which grapes or apples are grown will now be free of Inheritance Tax either during their lifetime or as part of a Will.

This clarification extends the definition of what constitutes food to cover the key ingredients of wine and cider, as previously APR was only applied to land used for growing crops or raising and grazing livestock.

Blair Gulland comments: “This confirmation is welcome news given the growth in planting UK vineyards has increased by 25% over the last 12 months alone. It is however worth noting that landowners who are selling agricultural land for vineyards at an increased premium might find there are taxable gains to pay on a pot of cash which would fall into their estate for inheritance tax. It is therefore worth taking advice before selling any land.”

“At Gullands we work with a number of new and existing vineyards and I was the trustee and solicitor to the Kingscote Estate and oversaw the running of the business for over two years, followed by the sale of the business, farmhouse, coach house, letting business, livery yard, fishing lake, vineyard, wedding venue and agricultural land in excess of 150 acres on behalf of the executors to the current owners. If a vineyard has developed out of your existing farm and land-owning operations, then it might be time to review the structure of your operation to make sure you have planned effectively for the future.”

Blair Gulland can be contacted at b.gulland@gullands.com