Vineyard Duties

If you are looking to start up your own vineyard and sell wine there are a few things that you should be thinking about with regards to wine duty. So, let’s not beat around the bush! Vineyard duties! They might not sound exciting but trust us, you will want to know about them up front!

If you are producing wine to sell then you must be licensed with HMRC for duty purposes. So too, you must also hold a wine producer’s license. Wine becomes liable to duty when it is made and the strength exceeds 1.2% alcohol by volume.

Duty is charged on the number of liters of pure alcohol within the wine and so is determined by alcohol strength. It becomes payable when the wine is released from or consumed in licensed premises or excise warehouses.

Below is a table that shows the duty rates:

Duty needs to be reported and paid on a monthly basis to HMRC in relation to the duty due.

HMRC Visits

HMRC will visit your premises occasionally to make sure that duty is being correctly assessed and accounted for. This will be done by auditing your commercial, accounting and management control systems. Also, physical checks will be made on production, stock and movements of wine in duty suspension.

You must keep records showing materials used. Particularly, you will need to record details of processes and operations, quantity and strength of wine, samples, domestic consumption, imports, exports, receipts and any stock takes.

Small Producer Relief

It is possible to claim Small Producer Relief as long as your production in a year is below 4,500 hectolitres. You will need to apply to HMRC for this and supply them with an estimate of your upcoming years production.

You can claim a refund of duty on wine returned to the premises provided it:

• was produced by you
• has become spoilt or otherwise unfit for use
• has not undergone any further process or dilution since leaving your premises

The following are excluded:

• adulterated wine (containing additions which we have not approved)
• wine for which no satisfactory audit trail is available

If any wine becomes spoilt more than 3 years after the duty was paid, you cannot claim relief.

Vineyard Duties – the Low down

The rules and regulations surrounding vineyard duties can be complex and often daunting. It is an undeniably complex area. Consequently, if you are in any doubt, it is crucial to seek advice from a professional. Experts in the field (like us!) know the legislation inside out and are best placed to ensure you remain compliant.  So, if you are at all unsure on any of the above or the HMRC guidance, please do give us call. With three offices across the South Coast, we are always happy to see how we can help!

Additionally, as we offer a free introductory meeting, there really is nothing to lose and potentially vineyard duty expertise to gain!

☎️ Midhurst: 01730 817 243 | ☎️ Chichester: 01243 782 423 | ☎️ Whiteley: 01489 287 782