| News - Tax | |||
| Written by Ray Clancy | |||
| Wednesday, 13 October 2010 10:25 | |||
UK investors in wine are building up huge unexpected tax bills having been misled by salesmen over how HM Revenue and Customs treat wine, it is claimed. HMRC recently produced guidance warning of increasingly widespread misunderstanding that the value of wine investments for inheritance tax (IHT) purposes is based on the purchase price of wine rather than its current market value. Read the rest here. ** Clearly anyone considering wine investment or who already has wine investments should get professional tax advice and not rely on what some high pressure telesales person tells them. Nor should they rely on claims about wine being a tax-free investment made on some companies' websites. Although many wines but not all are considered by HM Reveue and Customs to be wasting assets, the concept of wasting assets does not apply for inheritance tax. Inheritance tax values are based on current prices and not the price at which the wine was bought. |
Thursday 14 October 2010
Wine investment and inheritance tax: a further warning
Subscribe to:
Post Comments (Atom)
They will soon tax the air you breath,
ReplyDeleteAs inheritance tax covers property etc. I can't really see why it shouldn't cover the value of wine.
ReplyDeleteAs far as I am aware the HMRC are still yet to rule on capital gains on wine, I am not able to find a single guidance note specifically on wine, has anyone seen anything? also can anyone actually show a document that Fine Wine which lasts for 100 years is actually a wasting chattel??
ReplyDeleteHow many wine investors actually do a tax return and mention their wine?
Wine Purchase 100,000
Wine Sales 120,000
Profit 20,000
Consumed zero
Taken delivery zero
Tax on capital gain zero!!
It is a big bubble waiting to burst! they nailed Capone with tax, wouldn't it be great to end the wine scammers with TAX fraud.
Anon Wine that can be expected to last 50 years from the date of purchase is not a wasting chattel, so top Bordeaux from a fine vintage bought en primeur is probably not a wasting chattel.
ReplyDeleteThis comment has been removed by a blog administrator.
ReplyDelete