Fine Claret is normally considered to be a "wasting asset" by the Inland Revenue, which is not subject to Capital Gains Tax. However, the following points should be considered:-

• Again, it is essential that the wine is owned by a private individual, who does not trade in wine.
• The definition of a "wasting asset" as defined by S.37 CGTA 1979, is "an asset with a predictable life not exceeding 50 years and, in relation to tangible movable property, life means useful life, having regard to the purpose for which the tangible assets were acquired".
• In our professional opinion, all the wines we offer will certainly have reached their peak of maturity within 25-40 years, and we believe it would be very difficult to argue that they have a "useful life" exceeding 50 years.

Inheritance Tax: The wine will form part of your estate for Inheritance Tax (IHT) purposes. The definition of wine given by the Capital Tax Office is that of a ‘wasting asset/chattel’. The Revenue practice has been to value wine at acquisition cost, not current value. Again, the "wasting asset" and "not having a predictable useful life exceeding 50 years" conditions apply. Therefore, as long as proof of the purchase price can be provided, the value of the Claret will be based on its original cost for the purposes of Inheritance Tax, and not on any "appreciating value".

At Bacchus Vintners, we only advise on which wines to buy. We do not offer financial advice, however we do advise our clients to seek this information from an IFA or HRM Revenue & Customs:
http://www.hmrc.gov.uk/index.htm