Capital Gains Tax (CGT) is a tax on profit made when you sell assets or investments. These can be anything from holiday homes to works of art, shares or the goodwill of a business.
Wine is not subject to UK Capital Gains Tax as the authorities look upon it as a wasting asset, so any profit derived belongs to the client!
Some Key points for tax free wine investment:
You avoid trading status.
Use the wasting asset or chattels exemptions.
Keep records to justify your self assessment and make full disclosures on your tax return.
Fine wine has shown over time to generate in excess of 11% per annum on average. Prices can and do vary over time, but if one purchases very wisely, the risks can be minimised. Great wine is always in demand. Wine appreciates in value because it is constantly being consumed.
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