Key points
- It is likely to be five or six years before a new vineyard will generate income.
- There must be an intention to trade from the outset.
- Business owners must consider insurance VAT registration and the structure of the entity.
- Where the vineyard is part of a farm it could be treated as either a standalone operation or part of the farm.
The rapid successful growth of the English sparkling wine industry has presented tantalising opportunities for farmers in the possibly lucrative world of vineyards. But with this investment comes a large number of tax cashflow and legal alternatives that must all be considered.
English ‘champagne’ and tax planning
English wine has enjoyed a renaissance with numerous vineyards being planted in recent years. Sparkling wine (English champagne) has proved very fashionable especially along the south coast. This is due to its favourable...