Beware of businesses that use aggressive sales tactics or make unrealistic-sounding claims about the returns you could expect to see on your wines. As always, if an offer seems too good to be true, it usually is.
- Guaranteed profit. A reputable wine merchant will not make claims of guaranteed returns. Like all forms of investment, the value of your wine can go down as well as up.
- Fast returns. Be wary of claims of fast returns on your purchase.You should usually view fine wine as a medium to long-term investment.
- Take your time. Do not let yourself be rushed into making a commitment. A genuine offer is unlikely to require an instant decision.
- Tax free: Beware of claims that wine investments are tax free. Profits from wine investment are not necessarily tax free. Depending on circumstances, fine wines may attract Capital Gains Tax. For Inheritance Tax purposes, wine will be valued at the current open market value.You may need to consider taking expert tax advice.
- Choose a reputable wine merchant
- Know what you are buying
- Look after your investment
- Understand the small print
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