Tax guide - Wine
Investments Quote Line
0845 108 0505
Financial Services > Investments > Wine > Tax guide - Wine
Tax guide - Wine
As well as not being liable to either income tax or capital gains tax, inheritance tax is only paid on the value of the original purchase price.
As long as wine is held in the name of a private individual, who is not a wine dealer or trader, under current UK taxation rules, the Inland Revenue does not consider that holding a fine wine stock generates an income.
Wines are also not subject to capital gains tax as the Inland Revenue considers them to be a "wasting asset". Once again, the wine must be held by a private individual not connected to the wine trade and the definition of a "wasting asset" is an asset that's useful life is not likely to exceed 50 years. As most wines reach their peak of maturity between 25 and 40 years, it would be very difficult to argue that they have a useful life of over 50 years.
These conditions also apply to inheritance tax. For the purposes of inheritance tax, as long as proof of the original purchase price can be provided, the value of the wine will be based on its original cost and not an appreciating value.
Investments.co.uk covers the entire range of financial investments so visit us at www.Investments.co.uk/Financial Investments to help you put together a well balanced investment strategy.
Top Savings & Current Accounts
| Provider | Overdraft / Interest Rate | ||
Alliance & Leicester Premier Current and Saver |
Premier current linked with premier saver offer 12% gross pa/AER | 0% for 12 months | |
Cahoot |
3.75% AER w/o chequebook or 3.65% with chequebook | 9.8% | |
Citibank Plus |
A fee of £10 is payable but whole load of extras inc travel and phone insurance | £500 interest free then 8.8% | |
Firstdirect.com |
Minimum pay in £1500 or more per month | £500 interest free then 10.9% | |
Intelligent Finance |
3.00% AER calculated daily | 10.05% | Details |
| HSBC Current Account | Free international debit card | Details |
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
| investments news |
|---|
| Eurozone still offers good investments, expert claims - Fri, 16 May 2008 |
| Small cap firms 'should prove to be good investments' - Wed, 14 May 2008 |
| Ethical investments aim to encourage corporate responsibility - Tue, 13 May 2008 |
| More News |
