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Old World Taxes
There is great demand for fine wines. The best vintages are in limited supply to start with, and as they get consumed their rarity increases and their price rises.
Although prices can and do vary, over time we would expect to see a steady increase in value.
The current ruling by HM Revenue and Customs is that
"A wasting asset is an asset with a predictable life of 50 years or less", and generally a collection of fine wines will come in to this category.
Any gain on a wasting asset is exempt from Capital Gains Tax.
(See Help Sheet IR293 on www.hmrc.gov.uk/helpsheets/ir293.pdf
Your broker will be pleased to discuss this with you in the light of your own circumstances.
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