How do I start building my fine wine investment portfolio?
Firstly, we would establish your objectives in regards to investing in fine wine i.e. how much capital you would seek to invest over what period of time, any “brand preferences” in terms of specific wines and any level of weighting within a portfolio in terms of price. With this in mind, our specialists will select wines and introduce them to you as portfolio options.
How long do I need to hold my investment in wine?
As fine wine tends to deliver stronger returns over the long term, we recommend that you plan for your wine investment to be held for at least 3-5 years. Certain wines have shown exceptional short-term gains in some years, but this is not the norm.
What are the costs?
Our service includes a dedicated specialist portfolio manager who will advise you on the acquisition of a portfolio of finewine with strong growth potential in line with your investment goals.
You will have access to the finest wines in the world, selected by our analysts for their investment potential. Your portfolio manager will provide essential market information including details on market trends, specific wines and price-sensitive news and events which may affect values.
We provide storage management for the first five years in a Government bonded, specialist facility to protect the quality and provenance of your wine. The service fee is linked to the acquisition price of fine wine and comprises a 3% annual fixed rate charge for 5 years payable at the time of investment. For further details, please request a copy of our terms and conditions.
Are there any risks to investing in fine wine?
All investments carry risk and prices may go down as well as up. Fine wine prices vary so always check that you are paying a fair price.
What are the storage charges and arrangements?
The administration fee includes five years’ storage and insurance at LCB’s Vinotheque, which specialises in the storage of fine wine. Correct storage conditions areessential for protecting the provenanceand value of the wine. The payment of VAT and Duty on wine is deferred until such time that the wine is removed from bonded storage. Should you sell your wine whilst still stored in bond, you will not trigger the VAT and Duty payments.
What happens when the initial five-year storage period ends?
You will be notified of the completion of the initial five-year service period covered under the original purchase arrangement of your wine. After this, a small annual charge is made for the ongoing insurance and storage arrangements along with the provision of the full Marchant Group service.
Is there any tax payable on profits?
In principle, fine wine is categorised as a ‘wasting asset’ and can be treated as a ‘chattel’ by HM Revenue & Customs and accordingly any profit on sale is exempt from Capital Gains Tax.
How do I sell my wine?
Your Portfolio Manager will keep you informed on the price performance of your wine and will advise you on the optimum time to exit. When you have decided that you wish to sell your wine, your Portfolio Manager will advise you what price would be available in the market at the time and would undertake to broker the wine with an agreed target price. Marchant Group cannot be liable to guarantee the level of return and would remind you that the prices in all investments can go down as well as up. There is no charge for brokering the sale of wine acquired from Marchant Group.