| Wine
is not subject to UK capital Gains Tax as the authorities look upon it as a wasting
asset, so any profit derived belongs to the client. Fine
wine has shown over time to generate in excess of 11% per annum on average. Prices
can and do vary over time, but if one purchases very wisely, the risks can be
minimised. Great wine is always in demand. Wine appreciates in value because it
is constantly being consumed. Chateau
Rayas in 1990 produced a wine, the stuff that legends are made of. Only 2000 cases
were made, and wine connoisseurs all over the world clamoured for it. Ten years
later the price had been driven up to dizzy levels because so much of it had been
consumed, putting pressure on the remaining stocks. Also, the reputation of the
wine had been enhanced by enthusiastic reviews, none less than one from Robert
M. Parker, the American wine guru. He marked it 100 out of 100, it does not get
any better than that. You cannot make any more 1990, so demand has driven the
price to stratospheric levels. Château
Rayas 1990 (purchased in 1994) £380 duty paid
Château
Rayas 1990 (value in 2003) £4250 duty paid
A
spectacular 1118% return on capital. Château
Latour 1990 (purchased in 1991) £447 ex cellars
Château
Latour 1990 (value in 2004) £3400 in bond
A
very impressive 660% return on capital. Château
Margaux 1995 (purchased in 1997) £897 ex cellars
Château
Margaux 1995 (value in 2004) £1695 in bond
A
very healthy 89% return on capital. Château
Lafite 1996 (purchased in 1996) £925 ex cellars
Château
Lafite 1996 (value in 2004) £2000 in bond
A
very nice 116% return on capital. Château
Lynch Bages 2000 (purchased in 2001) £325 ex cellars
Château
Lynch Bages 2000 (value in 2004) £650 in bond
A
very rounded 100% return on capital. Château
Latour 2000 (purchased in 2001) £1750 ex cellars
Château
Latour 2000 (value in 2004) £3300 in bond
An
exceptional 88% return on capital. Château
Cheval Blanc 2000 (purchased in 2001) £1850 ex cellars
Château
Cheval Blanc 2000 (value in 2004) £4000 in bond
A
magnificent 116% return on capital. All
of these wines were freely available in the market place, at the prices quoted
for a 12 bottle case. There would of course be some ongoing costs, such as premium
cellarage at about £8 per case per year including full replacement value
insurance. Additionally,
the proceeds from disposal are tax-free. See
charts for relative performance: Full
tabled statistics are also available - please email info@dunbarfinewine.co.uk
for details. | 
