Fine Wine Tax Benefits

The world's best tax free investment

Under current UK taxation rules, NO TAXES are paid on gains as long as you do not trade wines on a regular basis. This is true no matter how much is invested or how high the value of the profits.

Capital Gains Tax

Table wine (fortified wine or port) is normally considered a "wasting asset" (life expectancy less than 50 years) and, as such, is not charged to Capital Gains Tax. However, the following points should be considered:

• The transactions could be considered a trading income if the wines were bought by a company or Wine Trader and therefore subject to Income tax.
• The definition of a "wasting asset" is "an asset with a predictable life of less than 50 years", and some very fine wines (such as Port or Sherry) could be expected to have a drinkable life span longer than this. In such cases, however, one could rely on the statute which states: "a tangible movable property shall not be a chargeable gain if the amount of the value of the consideration does not exceed £3000".

Income Tax

Unless you are a trader, there is no income gained from the investment in fine wine and therefore does not incur Income Tax.

UK Taxation

As our clientele's Fine Wines are purchased under bond and stored in a government bonded warehouse, they benefit from being VAT and Duty free.
THE DETAILS ABOVE ARE PROVIDED FOR INFORMATION PURPOSES ONLY. WE ADVISE ALL OUR CUSTOMERS TO OBTAIN PROFESSIONAL ADVICE FROM A TAX SPECIALIST.