Wines In Bond

What Are Wines In Bond?

Wines In Bond refers to wines stored in an HMRC-approved bonded warehouse without duty or VAT being paid until the wine is removed for home consumption. These wines are typically held under bonded storage conditions, often by collectors, investors, or merchants, offering several financial and logistical advantages.

Key Benefits of Buying Wines In Bond:

No Duty or VAT upfront
Stored in temperature-controlled bonded warehouses
Ideal for wine investment and fine wine collecting
Ensures provenance and traceability

Who Buys Wine In Bond?

Wine Collectors
Want to ensure provenance and condition — wine in bond is untouched and stored properly.
Avoid VAT/duty until they actually want to drink or sell it.
It adds a layer of trust if they decide to resell it later.
Wine Investors
Focused on reselling the wine at a higher value.
Wine stored in bond is easier to trade and more desirable on the secondary market because buyers know it’s been kept in optimal conditions.
They avoid taxes until the point of sale.
Merchants and Wine Funds
Buy in bond to hold inventory and flip it later to consumers or other merchants.
Also manage collections on behalf of wealthy clients or institutions.
Private Buyers with Cellars Abroad
May keep wine in bond outside their home country to avoid taxes unless they decide to import it.
Especially common in the UK fine wine market (e.g., wines stored at London City Bond or Octavian).

Wines In Bond: Quick Q&A

1. How long can wine be stored in a bonded warehouse?

There is no specific time limit on how long wine can remain in a bonded warehouse, as long as the warehouse complies with HMRC regulations. However, the wine must be kept under bond and be subject to periodic checks to ensure it remains in good condition and the tax obligations are upheld.

2. What types of wine are typically stored in bonded warehouses?

Bonded warehouses store a variety of wines, including still, sparkling, and fortified wines. The wine can be imported, exported, or stored for investment purposes. Wines stored in bond are often sought by collectors, investors, and businesses who want to manage taxes and preserve the provenance of rare and vintage bottles.

3. How are duty and VAT applied to wine stored in a bonded warehouse?

Wine stored in a bonded warehouse is held under duty suspension, meaning excise duty and VAT are not paid at the time of storage. These taxes become due when the wine is removed from bond for sale or consumption. The current duty rate for still wine is £29.54 per litre of alcohol, and VAT is charged at 20% on duty-paid goods.

4. What are the benefits of storing wine in a bonded warehouse?

Storing wine in a bonded warehouse offers several advantages:

Tax Deferral: Duty and VAT payments are postponed until the wine is withdrawn, improving cash flow for businesses.
Export Facilitation: Wine intended for export can be stored without UK duties, as these are typically paid in the destination country, avoiding double taxation.
Preservation of Provenance: Bonded storage helps maintain the wine's provenance, which can be crucial for investment purposes.

5. How do I transfer wine from a bonded warehouse to another warehouse?

Transferring wine between bonded warehouses can be done with the appropriate documentation and customs clearance. Both the sending and receiving warehouses must be HMRC-approved, and the transfer must be properly recorded for tax purposes. It's important to ensure the paperwork is in order to avoid any tax liabilities.

Why Choose Wine In Bond for Investment or Collection?

Investing in bonded fine wines allows you to purchase exclusive vintages while avoiding taxes until you're ready to consume or sell. The wines remain in optimal ageing conditions, and because they've never left the bonded facility, their value and integrity are preserved. It’s a preferred method for trading Bordeaux, Burgundy, Champagne, and other premium wines.

Explore Our Selection of Wines In Bond

Discover a curated selection of premium wines in bond from top producers, available for purchase or portfolio inclusion. Whether you're seeking investment-grade wine or looking to start your bonded wine collection, we offer expert guidance and secure storage options.