 The fine wine investment environment
Over the last 20 years, the triple-digit return from investing in the wines of top producers from excellent vintages indicates that the fine wine investment environment is worth serious consideration by those seeking to diversify their portfolio.
Tax efficiency
Accumulating a fine and valuable cellar can be highly tax efficient. Fine wines are bought, stored and sold ‘in bond’, thus avoiding the need for you to pay UK Duty and Value Added Tax at the time of purchase. Fine wine can also be classified as a ‘wasting asset’ for the purposes of Capital Gains Tax, with profits on disposals normally exempt for tax purposes. HM Revenue & Customs’ policy in this area may change in the future and individual circumstances will vary, so it is recommended that advice be sought from your accountant before investing.
Market transparency and liquidity
Founded in 1999, The London International Vintners Exchange (Liv-ex) is the leading exchange for trading investment grade wines between the global network of fine wine merchants, enabling increased transparency and liquidity in the market. Since early 2006, the Liv-ex 100 index of investment grade wines has been included in the Bloomberg list of recognised indices. Investment-grade wines are likely to have achieved both critical acclaim, at least 95/100 points (or equivalent) from a leading wine critic, and attract a regular international market through merchants, brokers and auctioneers.
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