Financial Services > Investments > Wine > Wine
Under current UK taxation rules, wine is not subject to any capital gains tax, therefore any profit made from the sale of wine belongs to the vendor. As with anything, the price of wine can vary considerably, but if you purchase wisely, you can minimise the risk involved - a great wine is always in demand!
Because wine matures and is being constantly consumed, it appreciates in value. Over time, fine wines have been shown to increase by as much as 11% per annum. Sometimes, hiccups in the economy may reduce the value of wines such as the miners' strike and the three-day working week of the 1970s. However, wines that were retained during this time soon recovered their values and went on to make healthy profits, proving that a fine wine will always perform in the long term.
There is no liability for either income tax or capital gains tax. Inheritance tax is only paid on the value of the original purchase price of the wine and not on the appreciating value. For more details, see our tax guide.
We also have information on everything you need to know about wine. See our guides to:
How to buy wine
How to store wine
How to choose wine
Insuring wine
Learn more about wine
Selling your wine
Tax guide on wine
UK Investments - Financial, Property & Other Investments - 1998-2008
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