View more on these topics

Wine investors being misled over IHT

Investors are being misled over the inheritance tax benefits of buying into wine and could face “huge” unexpected bills from HMRC, a national accountancy has warned.

UHY Hacker Young says wine is being touted as a tax planning tool, with wine investment firms saying its value for IHT purposes is based on the price it was bought at not its current value.

The warning comes after HMRC earlier this month stated it is “incorrect” that for IHT purposes wine cellars are valued at purchase price, in its August newsletter.

UHY Partner Mark Giddens says there can be capital gains tax exemptions on “wasting assets” like wine but these exemptions do not apply to IHT.

He says: “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.”

UHY Hacker Young adds that executors of wills, who are often a relative of the deceased person, could face a penalty of up to 100 per cent of the amount of tax lost by HMRC if they file an incorrect IHT return.

Unregulated collective investment scheme the wine investment fund says clients should always seek advice before investing in wine on the basis of tax.

Director Andrew della Casa says: “Tax planning is a complex area and we always recommend that our subscribers seek advice from their fiscal and other financial advisers if in any doubt as to how they should proceed before making an investment.”

Recommended

Moody’s to review Ireland’s debt rating

Credit rating agency Moody’s has placed Ireland’s debt rating on review for a possible downgrade. If Ireland’s rating is downgraded, it would go from Aa2 to Aa3. However, it is possible the country’s rating could fall to single A if the agency is convinced the stabilisation of Ireland’s key debt ratios is unlikely. The review […]

Adviser Fund Index

Exchange rates remained high on the political agenda last week as Brazil’s finance minister Guido Mantega claimed that governments were engaged in an “international currency war”. Mantega’s warning followed last month’s intervention by Japan to weaken the yen and reflected widespread concerns that some countries, notably China, are manipulating currencies lower to boost their economic […]

93

TSC Tory calls for RDR grandfathering

Treasury select committee member Mark Garnier has called on the FSA to allow grandfathering as part of the retail distribution review and reconsider its ban on commission. Speaking to Money Marketing at the Conservative conference in Birmingham this week, Garnier branded the qualification requirements for existing advisers as “outrageous” and suggested that experienced advisers should […]

2

FSA to probe pension firms on projection rates

The FSA will be running checks on pension providers to ensure they are not still using standard projection rates for cash and fixed-interest funds. The regulator plans to carry out a phone survey and desk-based review of providers later this year after repeated warnings to stop using the 5, 7 and 9 per cent growth […]

Keep calm and carry on?

We British are known for our stiff upper lip and just getting on with things. It’s part of our quirky cultural behaviour – like forming orderly queues, or saying sorry when it’s not our fault. Many of us just aren’t that great at talking about what’s bothering us. But if someone feels that the stresses […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers. Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com