As reported in the F.T. this weekend beware of salesman's promises over the tax benefits over investing in wine.
Basically the Tax rules covering wine are for
- CGT - wine is a wasting chattel up to 50 years old and so no CGT is payable on profit from a sale, similarly you cannot claim a loss on any wine that has corked and is under fifty years old. However this does pose the question if the wine is over fifty years old could you claim for a loss?
- IHT - the wine in your cellar or your wine merchants bond should be valued at current prices for probate.
If you are thinking of selling some wines from the 1960's perhaps now is the time to do it or if you need a valuation for IHT purposes, just contact us at the usual places.
For the full article from our accountants please see HMRC warns wine investors they are being misled - could face huge tax bills from our accountants UHY Hacker Young