How you store and manage your wine purchase is crucial to its future value. Whilst you can keep fine wines in your own cellar, wine bought for investment is usually stored professionally, either in your own warehouse account or in a merchant’s customer reserves.
- 'Duty paid' or 'in bond'. Wine for investment is usually held 'in bond', meaning that it is free from UK excise duty and VAT while it remains there. Only when the wine is removed from bond are these taxes paid.
- Access. Wine held in your own account gives you complete control over it. If you are storing wine in a merchant’s customer reserves, ensure the wine is clearly identified, stored separately from the merchant’s own stock and will not be moved without your prior agreement.
- Insurance. Your wine should be insured to at least to the value of the original purchase price (ideally, the wine should be insured at replacement value). With en primeur purchases, be clear as to whether you will get a refund from your merchant if a producer fails to supply the wine as arranged.
- Correct storage facilities. Your wine should be stored in a secure warehouse with appropriate temperature and humidity levels.
- Choose a reputable wine merchant
- Know what you are buying
- Understand the small print
- Don’t fall for hard sales tactics
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