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UK vineyards 'missing out' on tax benefits introduced in the Budget

Published:  11 May, 2015

UK vineyards are missing out on tax benefits that are available to farmers, market gardeners and hop growers, Harpers has learned.

UK vineyards are missing out on tax benefits that are available to farmers, market gardeners and hop growers, Harpers has learned.

During March's budget, Chancellor George Osborne announced farmers would be able to average their income over five years to help offset fluctuations in agriculture. However the WSTA has learnt that the current definition of farmers excludes vineyards, although it does cover hop growers and owners of cider orchards.

It means English wine growers are currently not able to able to average their income over five years to help manage the ups and downs that come with farming and fluctuating vintages in the same way as other growers.

The WSTA confirmed it would be writing to Defra and the Treasury following the election to outline its concerns over the new arrangement, and highlight the issues vineyards face with the changing weather from year-to-year and the impact this can have on yields from each vintage. It will seek clarification as to how the policy would be carried forward.

"We think being included could help vineyards significantly and so will be press for their inclusion in the new scheme," a spokesman said. "We need to find out more, given that there are 450 vineyards in the UK now, it could end up being useful and valuable to people who are starting out."

He said it would allow vineyards to plan for the longer-term by giving a more stable financial footing. "Our view is that if vineyards have just started, they may not earn anything for the first two years and to be able to average the tax burden, could help them keep going."

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