Tax-efficient, fine wine maintains positive growth in August 2021

With Tory Tax Tactics grabbing the headlines, fine wine owners will be delighted with the Liv-ex 100’s sixteenth month of consecutive growth in August 2021. Fine wine’s strong, stable performance, combined with advantageous tax treatment, makes it an important option for investors.

The key Liv-ex 100 benchmark rose 1.3% in August and the fine wine market continues to broaden in 2021, seeing sustained strong performances across wine-growing regions. The broader market measure, the Liv-ex 1000, also rose 1.3% in August, recording its 12th successive month of gains and an 8.3% rise YTD.

Burgundy wines delivered the top price performances in the month, led by Coche-Doury, Meursault 2016’s 11.1% monthly rise.

The regional Burgundy 150 index has grown:

  • 10.56% YTD,
  • 12.51% over 12 months
  • 75.38% over five years.

Despite Burgundy’s strong performance, the top Liv-ex regional measure is currently the RoW (Rest of the World) index, which is up 10.74% YTD. Largely influenced by the top Californian wines, increased levels of trade in these wines and the recent Napa releases are driving this current market performance.

To get an understanding of trend and where the key secondary market activity is focused offers the opportunity for returns for investors. Longer-term fundamentals, such as liquidity, should also be borne in mind when building a fine wine portfolio.

With tax at the forefront of media headlines, understanding the advantages of tax and fine wine, with profits generally CGT exempt, are an important consideration for investors. See our Special Report on the Tax Treatment of Fine Wine for a useful insight to discuss with your expert Tax Advisor. For more information call the Vin-X team on 0203 384 2262.