Investing in Fine Wines
Readers may be startled to learn that many of the world’s finest wines are indeed a commodity and are traded throughout the world to an ever expanding group of collectors. A mature market has now been developed. Any capital enhancement that accrues is UK tax free for the individual investor. Because of our experience we can offer an individual tailor made service to the private investor. So whatever size of investment you are willing to make. Whether you wish to join our saving scheme or have a larger amount at your disposal. Then we have the connections to ensure that you are able to maximise your return on your investment.
GOLDEN RULES FOR INVESTMENT
In order to assist there are several issues for you to consider. Clearly one of them is to ensure that you select the right Wine Merchant and at We Love Fine Wines we have all the necessary experience to be able to formulate your cellar plan.
- Realise that your investment time span is for the medium to long term. Usually a minimum of 5 years. Be patient, fine wines take time to mature.
- Only buy the best wines from the best vintages. For example it is far wiser to buy one case for £1000 than 5 cases for £200.
- Select your wine merchant carefully. Remembering that their experience and indeed connections are an important part in ensuring that the right wines that fit your investment profile appear in your cellar.
- When purchasing check that your wines have been properly stored and the labels, capsules and boxes are undamaged.
- Balance your investment portfolio by spreading your risk to other forms of capital appreciation.
- Have your wine stored in a bonded warehouse under your name so you have complete control over it.
- Finally remember that if the investment does go wrong at least you can enjoy some of the finest wines. Not many other forms of investment can give you that sort of pleasure.
BENEFITS OF INVESTING IN FINE WINE
There are some surprisingly marvellous benefits to be gained from investing in fine wines.
The drink for free benefit. When you invest in the cellar you could set up a parameter whereby a certain percentage of the investment is for drinking and the remainder is for investment. As your cellar matures then the profit gained from selling the investment element would go towards the cost of those wines that you wish to drink.
The tax free benefit. There is no tax to be paid on the capital appreciation of your cellar. Please remember that there must be no element of trading during the process of buying and selling.
As part of our service we can offer you a current market valuation so keeping you in touch with changes. There are many external indicators that will help you track your investment. So giving you piece of mind.
EN PRIMEUR INVESTMENT
This simply means purchasing a future of a wine. In the same way as other commodities are traded on international exchanges. It is a contract to purchase a case of wine now for delivery in the future. The principal is to purchase a wine for less than the price you would pay when the wine is bottled. Additionally it will ensure that you are able to purchase from producers where the demand outstrips the quantity available.
Wines are normally delivered 2-3 years after the vintage and are only available in unmixed cases.
There are special conditions.
- All en-primeur purchase prices do not include Vat or UK duty. These will have to be paid should you choose to have the wines delivered within the EU.
- Your wines will arrive in our warehouse. Upon arrival you will be notified and asked for your delivery instructions.
- If the intention for these wines is purely as an investment then you are best leaving them in bond.
(Currently the duty rates are £18.88 per case
of 9 litres for table wines and £24.12 for sparkling wines.)
For more information visit the WSTA website
If you would like any further information then please: 01732 464100 or e-mail: cellarplanning@welovefinewines.com
|
