Investing in Fine Wine

Fine wine investment; what are the risks and benefits?

Risks

Financial institutions are increasingly looking at fine wines as an alternative investment for their private clients; this means an increased correlation with mainstream markets but it also means that the market will be more liquid and obviously more volatile.
Many high street merchants and fine wine brokers are relocating their operations in Hong Kong; this means that the fine wine market has become more reliant and dependant on the Chinese economy.

Benefits and Advantages

Tax efficiency; In the UK, fine wine investment is tax efficient as the HM Revenue & Customs classifies wine as a wasting asset; all profits generated are exempt from Capital Gains Tax if certain requirements are met*;
Fine wine is a tangible asset which holds value during inflationary periods;
Fine wine is used by investors to hedge and create diversification;
Profitable; Historical returns over the last three decades show 12% annualised returns†; however, many of our clients have been crystallising returns in excess of 100%.

What Boltons Investments do for investors?

Buying the right wine for investment according to the investor’s strategy and requirements;
Building a wine investment portfolio taking under account market trends and opportunities;
Advice on selling and clear exit strategy;
Logistics and Warehousing under the client’s individual account

Why not contact our team for an initial discussion?
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*There are particular circumstances in which private investors may be liable to Capital Gains Tax in the UK. For example, if investors privately sell their wine assets, say 2-3 times a year, HM Revenue & Customs may consider this to be trading, thus subject to Capital Gains Tax. Also, investors may be liable to Capital Gains Tax if they are residents or domiciled outside the United Kingdom.

^†based on in-house indices including mainly first and second growth Bordeaux fine wines.

All figures are results of past activities; future performances of investments may reach lower, equal or higher levels. Although Boltons Investments’ professional brokers will do their very best to deliver above-average profit returns to investors; Boltons Investments cannot guarantee them.