Why investment wine is stored under bond, what you pay and when, and what happens when you want to drink it or sell it.
If you buy wine as an investment, you will see prices quoted "in bond". It is one of the most useful ideas to understand before you buy, because it affects what you pay and how your wine is looked after.
What bonded storage is
A bonded warehouse is a secure store approved by HMRC, where goods can be held before UK duty and VAT have been paid. Fine wine bought for investment is usually kept this way. Nokesbridge clients' wine is held at Wine Tunnels, in underground storage at London City Bond, Dinton Woods, Wiltshire.
Wine that stays in bond has never paid duty or VAT, which is why investment prices are quoted this way.
What you pay, and when
You pay the in-bond price for the wine, plus storage while it is kept for you. At Wine Tunnels, storage is £17.00 per 12-bottle case a year, or £8.50 for six bottles or fewer, plus VAT, paid directly to them.
Taking delivery
When you want to drink your wine, it leaves bond and UK duty and VAT become payable. We quote these before anything moves. Delivery within England and Wales is £22.49 per case, plus VAT.
Selling in bond
Wine can change hands while it stays in the warehouse, so there is no need to move it or pay duty when you sell. A clear storage record also helps buyers trust its condition.
This article is general information, not financial or tax advice. The value of fine wine can fall as well as rise.