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Help on selling wine


#21

This is one area of investment where anyone can provide advice as it is not regulated by the Financial Conduct Authority.


#22

was in my rules when I joined …around 2000


#23

back to the old discussion on if it is a wasting asset and therefore not subject to CGT ?!?!


#24

Cheers. I think I just skim-read the rules, thinking that they were all about higher-level governance-type issues, which 99% of them are.


#25

always read the small print :wink:

can’t remember what I had for supper last night but can remember silly bits and bobs from contracts and the likes over the years…including my favourite from a clients contract “labels must always appear level” my respsone “level to what…even when the drum is on a slope - do we need self-levelling labels?”…clause removed from next draft


#26

The CGT manual is “specifically vague”, but my reading is that the circumstances at the time of the sale would have to be considered, and a case of wine would be treated as one asset and not single chattels.


#27

I hope when EP wine is allocated it goes to the member who is going to drink it, not the one who is going to sell it.


#28

Agreed! But I guess the problem is knowing which member is which!


#29

Yes that’s the case for CGT, but if someone has a pattern of buying wine then selling at
a significant profit, HMRC may argue it’s a trade then tax them on income or corporation tax basis. I don’t for a minute think they would be interested in occasional single case sales over a period of years, but if you were to do it regularly I think it might. The time honoured ‘badges of trade’ which I remember from tax exams a long long time ago still exists!

https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim20205