Tax and Fine Wine in 2021 – what investors and collectors should know

The Tax treatment of fine wine is a key attraction for investors and collectors. Our latest Market Report is prepared by independent Tax Specialist, Peter Owen and provides insight to the key considerations when including fine wine in your Tax planning.

With the backdrop of a global pandemic and Brexit, the fine wine market has sustained strong growth throughout the Covid-19 period to date, providing stability and value to investors. Key performance indicators to note in the last year include:

  • Liv-ex reported that its key benchmark – the Liv-ex 100 rose 13.2% in the 12 months to 31.05.2021.
  • Liv-ex 100 up 5.1% YTD to 31.05.2021
  • Liv-ex 1000 has grown 45.7% over 5 years compared to FTSE 100 13% to 31.05.2021
  • In the last 12 months individual wines have enjoyed double-digit growth.
  • Top gains from 2019 en primeurs investments made in June 2020 have grown 100% (Chateau Lafleur 106.9% (09.06.21)

In addition to stability and growth, fine wine is recognised as a more tax-efficient asset than other forms of investment as it is generally exempt from Capital Gains Tax. However, there are a number of considerations to take into account and it is critical to stay up-to-date with the latest legislation.

Our latest Specialist Report for fine wine investors considers the ‘landscape’ for the 2021 tax year; the impact of Brexit and geo-politics of a global pandemic and points to any implications for Capital Gains Tax, Income Tax and Inheritance Tax for estate planning for wine investors.’

Prepared by Peter Owen of Gatwick Enterprise Tax Services Limited, you can download your copy of the report by registering below. Important: this report provides a general view and does not offer advice. For more information on tax and your investments in fine wine please speak to your financial advisor or tax specialist. To get the latest information on the Bordeaux En Primeur 2020 campaign and allocations, or any other queries you may have contact our specialist team on 0203 384 2262.

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