8 reasons to invest in fine wine
1) Fine Wine is not subject to Capital Gains Tax as it is termed a wasting asset. According to the Revenue, where bottled wine is purchased, each bottle is ‘a chattel’ for Capital Gains Tax purposes. Gains on selling chattels which are also ‘wasting assets’ are exempt from Capital Gains Tax. Bordeaux investors are advised to seek independent advice for more information.
2) In recent years there has been a significant increase in international investment in fine wine, in particular from mainland China and Hong Kong, but also Japan, Singapore and the USA.
3) The wine is stored safely in bond (Vine International part of Liv-ex) and therefore you do not need to have your own secure premises/facility.
4) Some wines can appreciate at a rapid pace; a good example would be Château Canon 2015, which saw an increase of 184% (taken from Liv-ex 01.02.19) over a period of 3 years.
5) The Liv-ex 100 has appreciated 225%+ since 2005 and 125% (data taken from Liv-ex 01.02.19) in the last 10 years outperforming the FTSE100 at just 63% (source: forecast-chart.com/historical-ftse-100.html) Hang Seng, Nikkei 225, S&P 500, Gold, crude oil and many other investments.
6) According to the Knight Frank wealth report 2018 fine wine ranked second to art. Looking at a 10 year period fine wine came second to classic cars. Please refer to page 69 for the full report click here
7) Excellent returns can be made on certain Bordeaux en primeur wines each year. We are more than happy to advise our clients which are the best wines to buy.
8) Investing in fine wine is an excellent way of diversifying your investment portfolio.