CGT rise prompts greater interest in wine investment
Fine Bordeaux wines like Petrus and Haut-Brion are becoming increasingly popular investment vehicles among people looking to avoid the planned rise in Capital Gains Tax (CGT).
The tax rise, which has been pushed through by Liberal Democrats members of the coalition government, could see the levy rise as high as 50 per cent, the Daily Telegraph reports.
To mitigate this, some investors have been looking into fine wines, which - along with racehorses and vintage cars - are classified as "wasting assets" by the tax authority, meaning they are not considered to have a "useful life" lasting longer than 50 years.
Some wine merchants report seeing increased interest in their business after the announcement that the CGT rise will go ahead was made, adding to the attraction sparked by the exceptional quality of Bordeaux 2009.
Other assets exempt from CGT include jewellery, artworks and antiques valued at up to £6,000 each and foreign currency held outside the UK for personal use.