HMRC has updated its guidance notes on what constitutes agricultural use of land for Inheritance Tax (IHT) extending its definition of ‘food’, according to UK accountancy firm BKL.

This means that for the first time there’s an opportunity for the owners of commercial vineyards and orchards to shelter their IHT liabilities. 

Richard Crane, head of the farms & estates team at BKL, believes that this could be a “significant extension to tax planning opportunities as it will become widely known that land used for producing wine and cider is eligible for Agricultural Property Relief (APR).”

...