Wine investors may be driven to drink over the latest warning from
HM Revenue &
Customs about its tax treatment.
The taxman has noted that there has been confusion about how wine is treated
for inheritance tax (IHT) purposes.
Under IHT rules the value of wine is calculated at current market value
rather than the price at which it was bought.
Advisers from UHY Hacker
Young warned that they have seen wine investment sales literature
which incorrectly suggests its IHT value is calculated at cost.
“Tax law is pretty clear on this point but wine investments are sometimes
made in a very salesy and high pressure environment and good salesmen always
sound plausible – some may not even know they are giving incorrect tax advice,
said Mark Giddens, partner at UHY Hacker Young.
“HMRC will be watching closely for this – it is part of a general trend for
HMRC to clampdown on IHT evasion.”
Taxman lines up early exit from doomed Concentrix tax credits deal, as HMRC faces intense scrutiny from MPs
Crowe Clark Whitehill , the top 20 accountancy firm, has announced the promotion of Chris Mould to partner
The latest opinions from Accountancy Age on Making Tax Digital, and outline plans to evolve the UK's corporate governance regime
Five million taxpayers are ow using digital personal tax accounts (PTA) as part of the making tax digital strategy, HMRC said