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<\/a><\/div>\n\nFrom the UKV International AG site <\/p>\n
\nTCGA92\/S44 and TCGA92\/S45<\/span><\/span><\/h2>\nHMRC\u2019s view of the treatment of bottled wines and spirits was first
\nset out in Tax Bulletin 42 published in August 1999.\u00a0 This guidance
\nfocusses on the availability of the chattels exemption, TCGA92\/S262, and
\n the wasting asset exemption, TCGA92\/S45(1).<\/span><\/span><\/p>\n\nChattels exemption<\/span><\/span><\/h3>\nBottled wines and spirits are chattels (tangible moveable property)
\nso disposals for \u00a36,000 or less will be exempt under TCGA92\/S262, see CG76573<\/a>.\u00a0
\n If the bottles are disposed of to the same person then they may form a
\nset.\u00a0 This would depend on the facts of the case including:<\/span><\/span><\/p>\n\n- whether the bottles are \u201csimilar and complementary\u201d – which would
\nrequire the wine in them to have been produced from the same vineyard in
\n the same vintage year, and<\/span><\/span><\/li>\n- whether the bottles are of greater worth when sold collectively than when sold individually<\/span><\/span><\/li>\n<\/ul>\n
See CG76631<\/a> onwards for more details.<\/span><\/span><\/p>\n\nWasting asset exemption<\/span><\/span><\/h3>\nA wasting asset is an asset with a predictable life not exceeding
\nfifty years at the time when it was acquired, TCGA92\/S44(1).\u00a0 Whilst
\nthis definition would clearly apply to cheap table wine which may turn
\nto vinegar within a relatively short period, even in unopened bottles,
\nour view is that it would certainly not apply to port and other
\nfortified wines which are generally recognised to have a very long
\nstorage life.<\/span><\/span>
\nBetween these extremes, there are a number of fine wines which are
\nquite drinkable after a substantial period although of course the taste
\nalters over that time. \u00a0With these the basic consideration, in our view,
\n is whether the wine has turned to vinegar or has merely matured. \u00a0Of
\ncourse in practice, most wine is drunk well below the age of 50 years
\nand in that sense it is very difficult to consider the issue in
\nisolation. \u00a0However, where the facts justify it, we would normally
\ncontend that wine is not<\/i> a wasting asset if it appears to be
\nfine wine which not unusually is kept (or some samples of which are
\nkept) for substantial periods sometimes well in excess of 50 years.’<\/span><\/span><\/div>\n<\/div>\n<\/div>\n\nThere is also this useful article by Philip Whitcomb:<\/span><\/span><\/p>\n\nThe taxing issue of wine<\/span><\/span><\/b><\/span><\/h2>\n<\/p>\n\n<\/span><\/span>
\n‘Since
\n the age of 18, I have always had an interest in wine. Not just the
\ndrinking of it, although I do enjoy that part, but also the laying down
\nand collection of fine wines. <\/span><\/span><\/span>
\n<\/p>\nFine wine investments are often advertised as a tax-free investment,
\nand the average value of fine wines in 2016 rose by around 25%. Whilst
\nsuch an investment can be tax efficient, there are a number of key
\nconsiderations which need to be kept in mind. The tax treatment is not
\nas black or white (or perhaps that should be red and white) as you might
\n suppose.’
Read the rest here<\/a>.<\/span><\/span><\/span><\/div>\n\nFor wine to be a ‘wasting asset’ it must be undrinkable if kept for 50 years. Although will be true for many wines, it is clear that investment grade fortified wines, such as Port and Madeira, are not wasting assets as they are certainly considered to be drinkable after 50 years from the time they were made assuming the wine was bought soon after it was produced.<\/span><\/span><\/span><\/span><\/p>\n\nThese wines may, however, become ‘wasting assets’ depending on when they were purchased:<\/span><\/span><\/span><\/span><\/p>\n
\nset out in Tax Bulletin 42 published in August 1999.\u00a0 This guidance
\nfocusses on the availability of the chattels exemption, TCGA92\/S262, and
\n the wasting asset exemption, TCGA92\/S45(1).<\/span><\/span><\/p>\n
\nChattels exemption<\/span><\/span><\/h3>\nBottled wines and spirits are chattels (tangible moveable property)
\nso disposals for \u00a36,000 or less will be exempt under TCGA92\/S262, see CG76573<\/a>.\u00a0
\n If the bottles are disposed of to the same person then they may form a
\nset.\u00a0 This would depend on the facts of the case including:<\/span><\/span><\/p>\n\n- whether the bottles are \u201csimilar and complementary\u201d – which would
\nrequire the wine in them to have been produced from the same vineyard in
\n the same vintage year, and<\/span><\/span><\/li>\n- whether the bottles are of greater worth when sold collectively than when sold individually<\/span><\/span><\/li>\n<\/ul>\n
See CG76631<\/a> onwards for more details.<\/span><\/span><\/p>\n\nWasting asset exemption<\/span><\/span><\/h3>\nA wasting asset is an asset with a predictable life not exceeding
\nfifty years at the time when it was acquired, TCGA92\/S44(1).\u00a0 Whilst
\nthis definition would clearly apply to cheap table wine which may turn
\nto vinegar within a relatively short period, even in unopened bottles,
\nour view is that it would certainly not apply to port and other
\nfortified wines which are generally recognised to have a very long
\nstorage life.<\/span><\/span>
\nBetween these extremes, there are a number of fine wines which are
\nquite drinkable after a substantial period although of course the taste
\nalters over that time. \u00a0With these the basic consideration, in our view,
\n is whether the wine has turned to vinegar or has merely matured. \u00a0Of
\ncourse in practice, most wine is drunk well below the age of 50 years
\nand in that sense it is very difficult to consider the issue in
\nisolation. \u00a0However, where the facts justify it, we would normally
\ncontend that wine is not<\/i> a wasting asset if it appears to be
\nfine wine which not unusually is kept (or some samples of which are
\nkept) for substantial periods sometimes well in excess of 50 years.’<\/span><\/span><\/div>\n<\/div>\n<\/div>\n\nThere is also this useful article by Philip Whitcomb:<\/span><\/span><\/p>\n\nThe taxing issue of wine<\/span><\/span><\/b><\/span><\/h2>\n<\/p>\n\n<\/span><\/span>
\n‘Since
\n the age of 18, I have always had an interest in wine. Not just the
\ndrinking of it, although I do enjoy that part, but also the laying down
\nand collection of fine wines. <\/span><\/span><\/span>
\n<\/p>\nFine wine investments are often advertised as a tax-free investment,
\nand the average value of fine wines in 2016 rose by around 25%. Whilst
\nsuch an investment can be tax efficient, there are a number of key
\nconsiderations which need to be kept in mind. The tax treatment is not
\nas black or white (or perhaps that should be red and white) as you might
\n suppose.’
Read the rest here<\/a>.<\/span><\/span><\/span><\/div>\n\nFor wine to be a ‘wasting asset’ it must be undrinkable if kept for 50 years. Although will be true for many wines, it is clear that investment grade fortified wines, such as Port and Madeira, are not wasting assets as they are certainly considered to be drinkable after 50 years from the time they were made assuming the wine was bought soon after it was produced.<\/span><\/span><\/span><\/span><\/p>\n\nThese wines may, however, become ‘wasting assets’ depending on when they were purchased:<\/span><\/span><\/span><\/span><\/p>\n
\nso disposals for \u00a36,000 or less will be exempt under TCGA92\/S262, see CG76573<\/a>.\u00a0
\n If the bottles are disposed of to the same person then they may form a
\nset.\u00a0 This would depend on the facts of the case including:<\/span><\/span><\/p>\n
- \n
- whether the bottles are \u201csimilar and complementary\u201d – which would
\nrequire the wine in them to have been produced from the same vineyard in
\n the same vintage year, and<\/span><\/span><\/li>\n- whether the bottles are of greater worth when sold collectively than when sold individually<\/span><\/span><\/li>\n<\/ul>\n
See CG76631<\/a> onwards for more details.<\/span><\/span><\/p>\n
\nWasting asset exemption<\/span><\/span><\/h3>\n
A wasting asset is an asset with a predictable life not exceeding
\nfifty years at the time when it was acquired, TCGA92\/S44(1).\u00a0 Whilst
\nthis definition would clearly apply to cheap table wine which may turn
\nto vinegar within a relatively short period, even in unopened bottles,
\nour view is that it would certainly not apply to port and other
\nfortified wines which are generally recognised to have a very long
\nstorage life.<\/span><\/span>
\nBetween these extremes, there are a number of fine wines which are
\nquite drinkable after a substantial period although of course the taste
\nalters over that time. \u00a0With these the basic consideration, in our view,
\n is whether the wine has turned to vinegar or has merely matured. \u00a0Of
\ncourse in practice, most wine is drunk well below the age of 50 years
\nand in that sense it is very difficult to consider the issue in
\nisolation. \u00a0However, where the facts justify it, we would normally
\ncontend that wine is not<\/i> a wasting asset if it appears to be
\nfine wine which not unusually is kept (or some samples of which are
\nkept) for substantial periods sometimes well in excess of 50 years.’<\/span><\/span><\/div>\n<\/div>\n<\/div>\n\nThere is also this useful article by Philip Whitcomb:<\/span><\/span><\/p>\n
\nThe taxing issue of wine<\/span><\/span><\/b><\/span><\/h2>\n<\/p>\n
\n<\/span><\/span>
\n‘Since
\n the age of 18, I have always had an interest in wine. Not just the
\ndrinking of it, although I do enjoy that part, but also the laying down
\nand collection of fine wines. <\/span><\/span><\/span>
\n<\/p>\nFine wine investments are often advertised as a tax-free investment,
\nand the average value of fine wines in 2016 rose by around 25%. Whilst
\nsuch an investment can be tax efficient, there are a number of key
\nconsiderations which need to be kept in mind. The tax treatment is not
\nas black or white (or perhaps that should be red and white) as you might
\n suppose.’
Read the rest here<\/a>.<\/span><\/span><\/span><\/div>\n\nFor wine to be a ‘wasting asset’ it must be undrinkable if kept for 50 years. Although will be true for many wines, it is clear that investment grade fortified wines, such as Port and Madeira, are not wasting assets as they are certainly considered to be drinkable after 50 years from the time they were made assuming the wine was bought soon after it was produced.<\/span><\/span><\/span><\/span><\/p>\n
\nThese wines may, however, become ‘wasting assets’ depending on when they were purchased:<\/span><\/span><\/span><\/span><\/p>\n
- whether the bottles are of greater worth when sold collectively than when sold individually<\/span><\/span><\/li>\n<\/ul>\n