Why is wine exempt of Capital Gains Tax?

Bottled wine is classed as a wasting asset or ‘chattel’ by HM Revenue and Customs. Gains made on the disposal of these wasting assets are generally free of Capital Gains Tax – s.45 (1) Taxation of Chargeable Gains Act 1992 (TCGA 1992), providing the wine will not continue to drink for more than 50 years – s.44(1) TCGA ’92.

Wine does not qualify for exemption from Inheritance Tax (IHT), and we recommend that investors seek the advice of a trusted tax professional on such matters

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