In the UK, bottled wine is classed as a wasting asset or chattel by HM Revenue and Customs owing to its limited shelf life.
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 1992.
Wilson Douglas only ever selects wines that have a drinking window of less than 50 years.
We strongly suggest that overseas investors seek the advice of an accountant or tax lawyer regarding the domicile tax status of gains realised on wine investments.
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.