Income Tax
There is no Income Tax liability provided your wine portfolio is held in your name and you are not a wine trader.
Capital Gains Tax
Wine is normally considered to be a ‘wasting asset’ by the Inland Revenue, which is not subject to Capital Gains Tax. However, the following points should be considered:
- It is essential that the wine is owned by a private individual, who does not trade in the wine sector.
- The definition of a ‘wasting asset’ as defined by S.3 CGTA 1 , is ‘an asset with a predictable life not exceeding 50 years and, in relation to tangible movable property, life means useful life, having regard to the purpose for which the tangible assets were acquired’.
Inheritance Tax
Again, the ‘wasting asset’ and ‘not having a predictable useful life exceeding 50 years’ conditions apply. Therefore, as long as proof of the purchase price can be provided, the value of the wine will be based on its original cost for the purposes of Inheritance Tax, and not on any ‘appreciating value’.
NB: Please note that all our statements concerning tax are based on our understanding of current tax law, and normal practices within the wine trade. Z&B Vintners Ltd cannot be held responsible for this information, which is given in good faith.
Ownership
Your wine reserves’ belong to you at all times. Z&B Vintners are the principal account holders at both Vinothèque and ‘Provenance in Bond’ however, under the umbrella of our company account, your individual reserves’ are held in your name. Wines from your reserves’ can only be removed from the Bond with written permission from yourself.