Fine Wine, Whisky & Tax in the UK
Find all the answers to your questions about the impact of different taxes on fine wine and whisky below.
The following information is for general purposes only and does not constitute professional financial or tax advice. Please consult a qualified tax or financial advisor if you have any questions or for personalised advice.
Capital Gains Tax
Wine and whisky may be classified as “wasting assets” if they have an expected life expectancy of fewer than 50 years, which would potentially exempt them from Capital Gains Tax…
Income Tax
If you are purchasing and selling wine or whisky frequently, HMRC may consider this as trading activity and making any profit could be subject to Income Tax rather than Capital Gains Tax…
Inheritance Tax
Wine and whisky collections which are part of an individual’s estate are subject to Inheritance Tax…
VAT & Excise Duty
For In Bond wines and whiskies, Excise Duty and VAT have not yet been paid. These costs are deferred until the time when they are taken out of bond…
Gifting Wine or Whisky
If wine or whisky is gifted by an individual, it may be treated as a potentially exempt transfer for Inheritance Tax purposes…