In summer 2022, Sussex wine producers successfully obtained a Protected Designation of Origin (PDO) following a seven-year application process and this is likely to have increased the value of trademarks held by vineyards in the county.
English Wine Week provided a suitable prompt for trademarks, their place in the drinks sector where they have been used since the first trademark was registered for Bass Pale Ale in 1876, and any particular tax considerations arising from them. Saffery Champness features this in more detail in an article just published on their website.
Lucy de Greeff, Director, Saffery Champness and a member of the firm’s Land and Rural Practice Group said: “Expenses incurred in obtaining the registration of a trademark, or costs of renewal of a trademark for the purposes of a trade, are generally allowable deductions for income tax or corporation tax purposes.
“Where trademarks are bought or sold, the rules are more nuanced and complex. For example, there are special rules relating to the amortisation of registered trademarks which are created or acquired from an unrelated party on or after 1 April 2002. Tax advice should be sought in advance of a transaction relating to the acquisition or disposal of a trademark.
“Registered trademarks can be a beneficial and accessible way of protecting goods that can be differentiated from those of competitors. They may provide a commercial advantage and benefits are starting to be seen by many businesses, including within the growing UK wine industry.”
