The dust is beginning to settle following Philip Hammond’s last Spring Budget (will now be an Autumn Budget) and I can report that there are no significant changes that will directly affect investments in fine wine by U.K. Resident and domiciled individuals. However with Article 50 about to be triggered by Theresa May and our formal exit from the EU only two years away it’s a case of watch this space. Whilst I cannot see Brexit changing the UK domestic tax landscape fundamentally, there will be yet unknown changes to the taxation of international trade and the imposition of Customs Duties.
For those investors who are UK resident but not UK domiciled new “deemed domicile” provisions kick in after 6 April 2017. These provisions remove the remittance basis of taxation for non-UK source income and gains for individuals who have been UK resident for at least 15 of the previous 20 tax years. If this affects you then I’m sure you will have taken advice already, but there is still time if you have not.
Having returned from a post budget trip to Épernay where I dutifully paid respect at the resting place of Dom Pérignon, I have concluded that the tax commentary I prepared following the 2016 budget remains intact for the 2017/18 tax year. We are now firmly in the era of the 20% rate of capital gains tax (except for domestic property which remains at 28%) but everything else remains pretty much unchanged. My trip also reminds me that ensuring your chosen vintage becomes increasingly scarce is also to be recommended!