What are the tax benefits of investing in fine wine?

How does HMRC treat investments in fine wine? Our latest report, ‘THE TAX TREATMENT OF FINE WINE‘, is written by independent tax specialist, Peter Owen of Gatwick Enterprise Tax Services Limited, who has just published his annual review on the tax regime affecting fine wine and provides a ‘user-friendly’ explanation of how HMRC classifies fine wine, what benefits are available and what you need to look out for to ensure you invest and collect wine as tax efficiently as possible.

This special report looks specifically at the tax treatment of fine wine in the financial year 6thApril 2019 to 5thApril 2020 and is FREE and available to download now. Some of the key considerations are:

 

  • Buyer motivation – are you investing or trading and what are the tax implications?
  • Investors should not trigger Income Tax liability – but trader be aware.
  • Capital Gains Tax treatment – fine wine is normally exempt, but how is this determined and what should you be aware of?
  • Inheritance planning – fine wine is an easily transferable asset you can share and enjoy with your family and, as any gains are normally exempt from CGT, the report explains how the asset can be used in regards to IHT? 
  • Fine wine and EIS – the Government’s Enterprise Investment Scheme offers significant tax benefits for investors and fine wine companies which have been granted EIS approval and are undergoing an Offer for Shares which qualify for EIS can be an exciting way for investors to enjoy an interest in fine wine with the Scheme’s tax advantages.

As always, we remind you that everybody’s circumstances are different and you should always seek professional tax advice from your financial advisor.

For more information on specific wines, the current market conditions and investing in fine wine generally, please call us now on 0203 384 2262.