Tax Considerations

The Ideal Wine Company truly believe in honesty and transparency. It is important that all potential clients familiarise themselves with taxation legislation concerning fine wine collecting. 

Although fine wine can definitely be considered more tax-efficient than other forms of collecting, there are a number of key considerations to be made, and it is important to note that legislation is not always black and white in this region.

The content below is based on UK law and is appropriate and applicable only to UK citizens and residents.

Inheritance Tax

Section 160 of the Inheritance Tax Act 1984 states that Inheritance Tax (IHT) is applied to the value of any property at the date of application, not at its original purchase value. For IHT purposes a ‘wine cellar’ is any collection of wine forming part of an estate over the IHT threshold, no matter how it is stored or in what quantity.

“It is clear that a wine cellar must be valued at its open market value for Inheritance Tax purposes at the time of the relevant occasion of charge” (HRMC Newsletter August 2010)

Capital Gains Tax

Capital Gains Tax (CGT) does not apply to ‘wasting assets’, those whose predictable life does not exceed more than 50 years (Section 44(1) Taxation of Chargeable Gains Act 1992).

collector's guide

This Fine Wine Collectors Guide will take you through a very comprehensive journey through the Fine Wine market.