Think about wine sold by UKV PLC, a prestigious United Kingdom wine broker, and thoughts drift toward relaxing moments and good conversations. Delve into the inner sanctum surrounding wine more carefully to discover that investing in wine is often a fruitful experience. For one thing, selling old wine bottles is typically free from capital gains taxes.
Wine is a Wasting Asset that is Free from Taxation
For reasons defying ancient wisdom, the antiquity of wine is not recognized by those who impose taxes. Instead, wine is viewed as a wasting asset that deteriorates with time. Tax regulations assume that the main reason for purchasing wine is to drink the product rather than viewing the item as an investment.
Sell Wine and Reap the Full Monetary Benefit
People who want to collect wine as an investment strategy are often excited when they learn about the wasting asset rule. Unlike the stock market that imposes capital gain taxes whenever an investor makes a sale, wine has its own peculiar rules. Since selling fine wine is relatively free from capital gains, the seller benefits from not having to pay any taxes on the profit.
Unlike the stock market that imposes capital gains taxes whenever an investor makes sales, wine has its own peculiar rules. However, tax regulations are always subject to change. Consequently, a wine investor needs to know the current laws about taxation and capital gains prior to making any sales.
Imagine Receiving a 12 to 15% Return on an Investment
An experienced investor knows that any stock, bond or mutual fund granting a 12% return over the years is a wise investment. Of course, the greed factor often plays a large role in making investment decisions. For many people, a 12% return does not offer a substantial reward. However, these same investors often take huge risks leading to ultimate losses. The beauty of investing in wine is that investors often do realize 12 to 15% returns on their investments.
Store Wine in a Bonded Warehouse Regulated by the Government
At UKV PLC, investors can make arrangements to store their wine collections in fully insured warehouses. The option is ideal for potential investors who do not have ample storage spaces in their homes. Furthermore, every investor holds a bonded account.
An Investor Always Owns the Wine Collection
When an individual has a bonded account, the investment belongs exclusively to that person. This means that the investor still owns the wine collection even if the company unexpectedly dissolves. An investor’s wine assets are fully insured for a nominal annual fee of £10-12 per case. The investor makes arrangements to directly debit the fee from a checking account at the beginning of each year.
Fine Wine Outperforms Stocks, Precious Metals and Artwork
Many people think that artwork is a superior type of investment. The logic is that the value of paintings painted by masters surely beats the performance of contemporary businesses. However, this perception is incorrect. Art investors are barely able to realize even the most moderate returns on their investments. Unless a person owns an original painting by Leonardo da Vinci or Vincent van Gogh, the artwork is unlikely to bring a more than favorable return.
Wine Offers an Impressive Return in Comparison with Art
Contrast the typical art collection with a fine wine collection that typically averages a 14.2% return. An investor owning a valuable fine wine collection may even realize as much as a 600% return after keeping the collection for 10 to 15 years. Another benefit of investing in wine is that the investment is less volatile than the stock market. In addition, wine offers a certain measure of stability due to it historical significance.
Wine Investors are Overjoyed with their 20% Returns Since Brexit
Wine prices have escalated approximately 20% since Brexit. British citizens now have to pay quite a bit more money for their favorite bottles of wine. The cause of the price increase is due to the fact that the British pound no longer carries as much weight. Plus, Brexit has seemingly caused the government to pay more money for imported wine. Although these price increases may not meet with the approval of those who enjoy imbibing in wine, wine investors are only too happy to recognize that their wine collections are valuable beyond their wildest expectations.
Wine is a Good Choice for the Risk-Averse Investor
Purchasing fine wine from UKV PLC, a reputable specialist wine broker located in the United Kingdom, offers many benefits to investors. The first benefit is that wine is generally thought of as a favorable risk. All investors, whether investing in wine, stocks, bond, mutual funds, real estate or precious metals, need to consider the risks before they invest their money. The fact that the value of a bottle of wine increases with age is something no one, other than a tax regulator, denies.
Wine is a Rare Investment
A wine collector views wine as a rare product. Derived from grapes, every bottle features its own distinct character. Once a bottle of fine Bordeaux is consumed, an exact replica is impossible to find. When thinking about investing in wine, rarity is a significant consideration.
Schedule an Appointment with a UKV PLC Professional
People who are intrigued by the idea of investing in wine may want to schedule an appointment to speak with a UKV PLC consultant. Starting a valuable wine collection with the help of a professional can make a difference in the eventual value of a fine wine collection. Specializing in a wide array of labels, prospective investors are sure to find many different varieties to add to their collections.
In addition to expert advice, new investors benefit from the excellent customer service. Investors can make arrangements to meet with a consultant in the Surrey or London location or even in their own residences. Once an investor decides to work with UKV PLC, a consultant continues to offer counsel about the latest trends. Contact UKV PLC at 0207 471 8030 today.