Wine in bond

[Hosenbugler]

I got notification today that my 2013 Rhone En Primeur application , is now in UK bond, , like others already in bond, tax not paid.

However, do I recall that the chancellor announced in the past budget that taxes on wine would rise by RPI on an annual basis?

I'm not totally sure, but thats the gist I caught snippets of.

Therefore, I'm wondering, if thats the case, then it will be fiscally prudent to pay the taxes now, as against later, as in the later context, the amount to be paid will be more.?

Considering money in the bank earns a % of buggar all, have I got this right, pay the tax now, not later?

TIA

[madbadger]

I had the same email. Would be interested in the answer.

My gut feeling is to pay it now. Can't see it being less and I like having wine paid for like a fancy version of keeping it under the stairs.

[peter tdci]

Bear in mind that duty is only £25 per 12x75cl and what you'll have to pay would include VAT on the cost of the wine plus the duty - which might be a lot more.

Also, does the warehouse where the wines are offer duty paid storage? I'm not sure if your wine would have to be physically separated from under bond stock after you'd paid the customs charges.

[Hosenbugler]

peter tdci said:

Bear in mind that duty is only £25 per 12x75cl and what you'll have to pay would include VAT on the cost of the wine plus the duty - which might be a lot more.

Also, does the warehouse where the wines are offer duty paid storage? I'm not sure if your wine would have to be physically separated from under bond stock after you'd paid the customs charges.

Yes, but the idea is to pay as little vat/duty as possible. The outlook being that if duty is going to rise, then may as well pay it now as preferable to later, if paying more. The only thing of relevance I'm aware of, as things stand, then if we leave the EU , then VAT may drop, or not, as the case may be, I'll not hold my breath.

As said, cash holding, earns a % of nowt, , so an important factor.

The company I use offers seamless, without cost , shift from bond to duty paid storage.