TAKE ADVANTAGE OF THE FINE WINE BOOM IN 2020
Learn from the UK’s leading fine wine investment experts.
Last year UKV International delivered on average return for their clients of 14.2%.
1. TAX FREE
The tax treatment of wine is unusual and based on the assumption that all wine is bought predominantly for consumption and that if left for extended periods of time would become undrinkable. For this reason, wine falls under the 50 Year Rule and is deemed to be a Wasting Asset by HMRC. Due to this, fine wine is regarded as one of the last remaining tax free areas where private individuals are not taxed on gains.
2. PAST PERFORMANCE
Case study: Lafite Rothschild 1982 versues FTSE 100. The figures speak for themselves with an annual average growth of 19.41% against the FTSE 100 index’s 6.79%. Fine wine is a genuine alternative asset class.
3. BREXIT PROOF INVESTMENT
A fine wine portfolio could be the best hedge against a ‘No Deal’ scenario or a stagnating economy. It’s clear that with Brexit uncertainty, stock markets and traditional assets are no longer a secure or lucrative option for investors.
4. RELIABLE RETURNS
Last year UKV PLC delivered on average return for their clients of 14.2%.
The fine wine market enjoyed a ‘Brexit Boom’ following the UK vote to leave the European Union – and the so called
‘lesser’ vintages are leading the charge. If you pick the right wine you can expect an average increase of 1% per month. All of which is tax free.
5. DIVERSIFY YOUR PORTFOLIO
If you are overextended in a particular asset class like the UK stock market or property, and you want to reduce your risk exposure, fine wine investment can be the physical asset to diversify help your portfolio.
6. SUPPLY AND DEMAND
Unlike other luxury markets, supply cannot be increased because once the production of any chateau in a particular vintage year comes to market – that’s it, there is no more. As fine wine matures and improves with age, it becomes more desirable and when drunk, reduces supply even further, and pushes the price up as more investors seek out fewer bottles. And the situation is compounded by an ever increasing global demand. The result is a perfect inverted supply curve.
7. UKV INTERNATIONAL ARE ESTABLISHED WINE EXPERTS
We monitor trading trends internationally through an extensive network of merchants and brokers alerting our team as to which wines are under demand to optimise continuous growth for our clients, ultimately to achieve high end returns.