Vineyards
This publication is intended for Valuation Officers. It may contain links to internal resources that are not available through this version.
1.1 This instruction applies to all rateable vineyards/wineries.
1.2 This section does not cover premises used as a farm shop, which is covered by a separate section in the rating manual.
1.3 Background
1.4 A vineyard is an area of land that is used to plant vines. These vines will then bear grapes which are used to make wine. These grapes can be but are generally not used as ‘for the table’ dessert grapes, which are much sweeter. Initial costs of establishing a vineyard are significant with vines taking approximately 5 years to reach full productivity.
1.5 Most of the commercial vineyards are currently located in the Southeast area of the UK. With the change in climate this is beginning to expand into the Southwest, South Wales, Midlands and East Midlands areas.
1.6 A winery is something different to a vineyard. This is where the wine is produced. This generally involves harvesting the grapes, de stemming (grapes separated from rest of cluster), crushing, fermentation (sugar converting to alcohol), bottling and aging.
List description: Vineyards/Winery & Premises
Primary description code: CX
SCAT code: 294
SCAT suffix: G
Bulk Class: As required for type of property
3.1 The Animal & Rural Class Co-ordination Team (CCT) has overall responsibility for the co-ordination of this class. Each Regional Valuation Unit (RVU) has a representative on the team. The team is responsible for the approach to and the accuracy and consistency of vineyards.
4.1 RVU will be responsible for referencing, gathering facts and valuation.
4.2 The Animal & Rural CCT will deliver practice notes describing the valuation basis for revaluation and provide advice as necessary during the life of the rating lists. Caseworkers have a responsibility to:
- follow the advice given at all times — practice notes are mandatory
- not depart from the advice given on appeal or maintenance work without approval from the CCT
- seek advice from the CCT before starting any new work
5.1 It is anticipated most rateable wineries will be sites with elements other than that of the vine bearing land, and buildings required as part of the process. Claims arising from ‘retail’ being part of the process should be resisted.
5.2 The exemptions section of the rating manual contains further details on agricultural exemption and should be referred to when valuing a vineyard/winery.
6.1 Inspections should be carried out in accordance with the Valuation Office Property Inspector Manual.
6.2 A winery should be measured in accordance with the predominant rateable premises they occupy. For example, industrial buildings will be measured to Gross Internal Area (GIA), whilst occupations of retail type space will be Net Internal Area (NIA). Whichever method is chosen, regard should be had to the definitions contained in the Valuation Office Code of Measuring Practice for Rating purposes.
6.3 When inspecting a vineyard/winery, property inspectors should record the location and description to include the following:
- location
- site — size, shape and topography
- buildings infrastructure — age, quality, construction
- services — heating energy source and water source
- car parking
- photographs of the main constituent parts of the site — typically, this can include
- indoor sales areas
- outdoor sales areas
- ancillary storage
- office
- processing areas
6.4 An inspection checklist is appended to this section (Appendix 1) and should be completed for all new properties, updated for maintenance work and stored in the property folder of the Electronic Document Records Management (EDRM) system.
6.5 Rateability
6.6 When inspecting this classes, special care must be taken with the following:
- identifying the correct unit of assessment
- agricultural exemption
6.7 Identification of the ‘Unit of Assessment’
6.8 Care should be taken in identifying the correct rateable occupier, particularly where facilities are shared between different ventures. It is not uncommon for larger establishments to provide a range of facilities such as gift shops and cafes. Other Non-Domestic uses may be present on site such as conference facilities or holiday homes. Details should be sought as to whether these constitute ‘let outs’ and/ or are operated on a separate basis.
6.9 Agricultural exemption
6.10 Vineyards are exempt as agricultural land. Provided all the grapes processed come from the viticulturists’ own vineyards, the processing of the grapes (the winery) should be regarded as incidental to the agricultural operation of growing the grapes. Processing in this context is to be taken to include bottling and storage of wine awaiting sale and buildings used for this purpose are exempt under Sch 5 para (3)(a).
6.11 If the viticulturist processes other grapes which are produced by other vineyards, none of the buildings will be exempt and, if they engage in selling wine by retail or wholesale (as opposed to selling to a wholesaler), the buildings used in connection with such activities will be rateable. However, regard should be had to the de minimis principle, which can be found in Section 2, part 6, part D of the Rating Manual. Whilst each case must be considered on its own facts and circumstances, any processing of other grapes or retail sales may be disregarded as insignificant if they represent no more than 5% of the total.
7.1 Rating surveys should be captured on the Rating Support Application (RSA). Plans and surveys should be stored in the property folder of Electronic Document and Records Management (EDRM).
7.2 Winery operations of a modest nature, which are likely to have just a shop or a café as the rateable element, should continue to adopt the local sublocation of the industrial/office/retail hereditament they occupy but have their SCAT code amended to 294G. They should be described as vineyard/winery & premises (part exempt).
7.3 Larger operations, which are likely to have a restaurant, retail space, holiday lets and conference facilities could be considered for a receipts-based valuation.
8.1 The Notice Requesting Statutory Information (Form of Return) for this class of property is typically obtained using VO 6003 or VO 6036.
8.2 Values for rateable elements will generally be determined by prevailing rental levels within the locality. Where no direct rental evidence exists, regard should be had to other similar properties in the locality. Larger sites, offering more of a leisure experience, could be considered for a receipts-based valuation.
8.3 Relativities
Relativities may require tuning to reflect individual circumstances following the exercise of valuer judgement.
8.5 Tours
Unless these are substantial, it is expected income from seasonal vineyard tours would be classed as de minimis.
Rating Support Application (RSA)
Survaid
Valuation Panel 1 (VP1) animal & rural class co-ordination team (CCT) members
SharePoint guidance for G class suffix
1. Market Appraisal
1.1 With over 900 vineyards in the UK, the British wine sector has grown in recent years and remains strong at the antecedent valuation date (AVD).
1.2 Wineries, where the production takes place, continue to be able to provide enough winemaking capacity to deal with the growth in grape production. Costs in producing wine in the UK have also risen, and margins on the bottles produced require careful management.
1.3 However, despite the cost increase, demand for vine bearing land remains strong, with premium prices continuing to be paid, and high-profile brands investing in the market. With areas of the UK suitable for viticulture expanding, this trend is expected to continue.
1.4 Wineries will vary in style and quality, ranging from those operating mainly within a small set of buildings, to those that offer a full leisure experience, with holiday lets, restaurants and wedding/conference venues.
2. Changes from last practice note.
2.1 No practice note was published for the 2023 revaluation.
3. Ratepayer discussions.
3.1 No discussions have been held with the industry to date.
4. Valuation Scheme
4.1 There is no agreed scheme for this class.
4.2 Values for rateable elements will generally be determined by prevailing rental levels within the locality. Where no direct rental evidence exists, regard should be had to other similar properties in the locality. Larger sites, offering more of a leisure experience, could be considered for a receipts-based valuation.
4.3 To ensure consistency, advice should be sought from the Animal and Rural Class Co Ordination Team (CCT).