TAX FREE INVESTMENT

Not quite as clear cut as you may think.  Basically rules change all the time, because money changes and so do profits.

The Inland Revenue, after £250,000 pounds of Fine Wine acquired, will make you pay Capital Gain Tax. This is why using wine funds that require very high equity have certain shortfalls. You are much better off using a wine company that allows smaller amounts built gradually (3-5k per case).

Everything under £250,000 is free from CGT and I would advise putting in no more than 50k in 1 year. Back vintages can spring up in value putting you nearer to CGT.  With this method you can decide to hold and pay tax or sell and stay under the limit.

 

What is the reason why wine is considered exempt?

Wine is a wasting asset.  Wine will eventually go bad and turn to vinegar, which means it is an asset that has a limited life. This means that the government can not tax these lesser amounts as under the current guidelines.

Think of a wine collection like a game of chess, plan your moves and have a strategy.

MAIN POINTS:

1.  You should always check with your accountant or someone that has financial knowledge.

2.  You can always check on this website or with another source before any large purchases.

3.  Use WINEPRICE, to search the length of life of your chosen wine.

Lafite Rothschild 2009
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Lafite Rothschild 2008
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Pétrus 2009
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