QUESTIONS & ANSWERS

Whilst we appreciate that you may have more questions than we highlight below, we have included the most common questions asked by prospective clients. Of course if you have further questions then please do not hesitate to contact us directly via the ‘Contact Us’ page on this website, or via any of the social media sites we use.

T&J recommends that you should be prepared to hold your wines for a minimum of FIVE years to reduce risk and exposure.

Firstly, T&J offers no guarantees on appreciation, nor do we subscribe to the views of many wine companies who currently suggest returns of 20% plus per annum. Although this is possible we prefer to keep our feet firmly on the ground. Under the current economic climate, T&J believes investors should expect between 6 and 12% per annum over a five year hold. Our commission structure will certainly help achieve your goals.

Wine-searcher (www.wine-searcher.com) is the most commonly used tool for price-checking. By entering details of the wine and vintage, you will find a broad selection of prices from brokers and merchants worldwide. It is worth noting the prices found on wine-searcher are ‘selling’ prices and NOT a true reflection of the ‘NET’ value of your wines – for the purpose of valuation we use the Liv-ex (London International Vintners Exchange) trading platforms as this offers full transparency.
(T&J recommends that investors ONLY purchase stock that is stored within the UK Bonded Warehouse system and through reputable merchants here in the UK)

T&J recommends an initial investment of +£10,000.00. Remember, wines of this quality demand and dictate high prices.

Like any investment there are of course certain risks involved. Wine prices can go down as well as up. Evidence suggests that there is a correlation between the wine market and the broader economic environment, but historically there is less volatility in the wine market. As long as the wine is held for the recommended time (currently a minimum of five years); then it should allow the performance to absorb any economic downturn.

The only additional costs that you will incur are the storage fees. As outlined on our ‘STORAGE AND PROVENANCE’ page, it is essential that you store your wines within a HMRC registered Bonded Warehouse in the UK. There are various companies with facilities that cater for wine storage, ensuring the correct conditions to maintain the provenance of your wine. The charges vary from £10-£15 per case — this charge should include an insurance premium. If on rare occasions the wine is damaged whilst in storage the wine is replaced at the current market value, therefore safeguarding your asset.

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.

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