Is Fine Wine a secure investment?
The nature of most investments is not without some financial risk, prices can go down as well as up. As Fine Wine prices depend on the wines’ increasing rarity, a wine portfolio must be regarded as a medium/long term (5 year minimum) investment. Historically, Fine Wines have over the last 10 years appreciated by approximately 12% per annum. What makes an investment in Fine Wines even more attractive is the fact that you are not liable for tax on profits from your investment. As fine wine is regarded as a wasting asset and as such attracts no UK Capital Gains Tax. Why should Fine Wine appreciate? Both the varying weather conditions and the Appellation Contrôlée Authorities in Bordeaux combine to limit the quantity of Fine Wine that can be produced each year. Increasing worldwide demand, despite the global recession, have for the best wines from the top vintages inevitably caused the values of these wines to rise as they mature and are consumed.
