T&J always encourage our clients and prospective clients to seek tax advice from HMRC or an IFA for clarification on your personal situation. However, the WSTA (Wine and Spirit Trade Association) offer an excellent guide – click here
GENERAL HMRC RULES FOR ‘WASTING ASSETS AND CHATTELS’:
CGT : It is generally considered that if a wine has a life span of 50 years or less it is a wasting asset and becomes exempt from capital gains tax. This rule applies to the vast majority of wines, although there are certain Chateaux/vintages that can have a longer life expectancy – T&J aims to offer wines that fall within the CGT tax exemption criteria.
IHT : Wine is still liable for inheritance tax purposes and will form part of an estate. Wine values are calculated at realizable ‘open market’ prices.
Twaites & Jones Ltd always advise speaking to a tax expert to clarify your personal circumstances.