Key Features

Your commitment

You make a single payment of at least £1,500 (£500 if you are adding to an existing investment) or £100 per month. There is no minimum investment period although you should consider a minimum period of 2 years to make a profit.

Risk factors

What you get back depends on future valuations of your specific wines and is not guaranteed. The value of your investment can go down as well as up. You may not get back as much as you invested.

How flexible is it?

Once you have set up your portfolio, you can make further payments into it of at least £500 at any time. The total amount you can invest in your portfolio is currently unlimited.

Your portfolio is likely to be invested in more than one wine at any time.

You can sell part or your entire portfolio at any time. Wine will be sold within 10 working days and settlement to you within a further 10 working days.

What might I get back?

As an investor you always own the wine purchased by your investment. You will therefore always have the wine to either sell at the current market value or to simply cellar for yourself and / or your heirs.

Investment returns depend on the wine(s), the period over which the wine is held and prevailing market prices. The average of all Bordeaux wine has returned a minimum of 7.7% per annum since 1975.

Can I take money out?

Your portfolio will normally consist of a number of cases of wine. You must request that Vinum Investments Limited sell one or more cases at any time. We are unable to provide withdrawals of an exact financial amount.

Where is my money invested?

Monies are used to purchase investment wine to which you receive full title and ownership. The wine purchased is owned directly by you, the investor.

Purchases will consist largely of the classified growths of Bordeaux together with Grand Cru Classé wines of Bordeaux’s right bank. Occasionally, investment opportunities may be sought outside Bordeaux.

What happens to my investment if I die?

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.

Wine can be left to beneficiaries per the instructions contained in your Will.

What are the charges?

The charges for Vinum Investments Limited and that of your professional adviser are included in the invoiced acquisition price for your recommended wine portfolio. The only charge levied by Vinum Investments Limited at the time of disposal, or delivery to you, will be the cost of storage and insurance, currently £7.60 per annum per case.

What about tax?

Wine represents a unique investment opportunity as in the UK there are no taxes - income or capital gains - on profits made from the sale of wine by individuals. There is no limit to the amount that can be invested in wine, and hence your potential profit.

Fine wine is considered by the Inland Revenue to be a wasting asset and as such is not subject to capital gains tax.

It must be emphasised that gains by an individual are free from taxes, whereas gains arising from wine sales by a Company or trader are likely to be construed as trading receipts and taxed.

IHT is covered in ‘What happens if I die?’

Can I change my mind?

Once an application form is completed we will confirm your portfolio with an invoice for the wine and the invoice price will be as close to the requested investment amount as possible. You will receive the invoice which is for settlement within 30 days. During this 30 day period should you cancel your investment, there
will be a 5% charge to cover administration and re-sale of the wine. Please see terms and conditions.

How will I know how my investment is doing?

We provide half-yearly valuations for your wine portfolio free of charge. In addition we will provide recommendations for sale and re-purchase at appropriate times to maximise your investment return. Many people have been collecting or investing in wine for a number of years and their objectives or requirements from accumulated wine may have changed. You may therefore need to know the value of your present wine holdings. Alternatively, you may be curious as to the value of your cellar. No matter what the purpose, we are happy to value your collection free of charge.

Terms and conditions

Law

For legal purposes the law of England & Wales or Northern Ireland will apply, according to where you reside when you realise your portfolio.

This information represents Vinum Investments Limited’s interpretation of the law and Inland Revenue practice as at date of publication. The contract terms, and the amount and taxation of benefits described, assume that there is no change in tax or other laws affecting Vinum Investments Limited or its investments. Vinum Investments Limited are not regulated by the Financial Services Authority.