Frequently Asked Questions
Naturally, as with any market, you want to make sure you are 100% comfortable before you start investing in fine wine. To assist you, we have compiled a list of general questions that clarify areas of this market for you.
Should you have any other questions, please do not hesitate to contact one of our brokers.
General
Where Is The Wine Stored ?
Your wine is stored at Octavian cellars in Corsham, Wiltshire.
Considered the world's best fine wine storage facility, based under the hills in Corsham in Wiltshire, your wine is stored in perfect conditions with constant temperature control. By storing your wine here, it will have excellent "provenance" and therefore will command the best value when the time comes to sell.
How do I know the wine is what I have paid for?
When your wine reaches the bonded warehouse it is checked with regard to not only the wine but also the original wooden case from the chateau.
How well is it insured?
The insurance on your wine (provided by The AXA Group) covers the asset for full replacement value at the time of any incident.
How much does the storage and insurance cost?
After the first year in bond which is paid for within our advisory fee, storage and insurance cost approximately £10 per case per annum, +VAT.
Does wine ever go down in value?
The market did go through a downturn in the late nineties as the Tiger economies had been heavily involved in the purchase of fine wine at the time of their crash but the market recovered remarkable quickly. During the current recession the market is faring extremely well, with prices rising steadilly on the best vintages. There are naturally examples of individual wines dipping in value, most typically over the short term. However, provided you stick to buying wines from the very best chateaux and from the best vintages there will generally be an upward trend on their value over the longer term as consumption reduces the supply and the wine improving with age increases the relative demand.
What if your company goes bust?
Your money is not invested with Aston Lovell but in the wine itself so your investment is perfectly secure.
Is it really completely tax free?
Storing your wine in bond means there is not VAT or import duty to pay. We sell all our clients wine in bond so there will not even be tax to pay on the sale. We also keep a close eye on the expected maturity dates of the wines we trade so that they will qualify as a wasting asset and thus your profits are free from capital gains tax.
Inheritance Tax will be charged on the value of the cellar and not the purchase price.
What is the minimum investment?
There is no set minimum investment, however the top performing wines including the Premier Crus will cost on average £3,000 upwards per case.
How long do I have to hold onto the wine to make a decent profit?
We would recommend that you hold onto your wine for a minumum of 3-5 years, although many of our clients will look to keep their wine for much longer as the returns from the finest wines from the best vintages can be even more considerable over the longer term, as stocks diminish and the quality of the wine in the bottle keeps improving over time. There are frequent opportunities for excellent returns in a shorter period of time , but as a rule of thumb we would always advise a medium to long-term holding.
What happens when I want to sell my wine?
On receipt of a written instruction to sell a client's wine we guarantee to sell that wine for the prevailing market price, with no commission deducted. In other words, a free sale!
Other
How long has your company been operating ?
We are in our seventh year of trading and have firmly established ourselves as one of the leading companies in this market.