Wine Enterprise Investment Scheme provides EIS benefits all year round

 

This means that EIS (enterprise investment scheme) benefits are now available to investors all year round – not just at the end of the fiscal year in March/April.

 

By investing early in the tax year investors are able to benefit from a real cash flow advantage throughout the year by, for example, having their tax codes changed, whilst still being able to carry back their rebate to the prior year if required.  An EIS is the only investment product offering this carry back provision.

 

TWEIS provides the combination of investing in the asset class of fine wine, with its unique characteristics, and some of the most attractive tax advantages available to investors, through an EIS.

 

The benefits of investing in fine wine are:

 

• Low volatility (when compared to other assets such as equities, gold, oil)

• High risk adjusted returns (when compared to other assets such as equities, gold, oil)

• Direct ownership of physical cases of wine (stored in government bonded warehousing and insured at replacement value)

• Uncorrelated returns to those of traditional assets (enabling wine to play a useful diversifying role in an investment portfolio)

• The value of wine cannot be debased by governments (it is a physical asset which becomes more attractive when inflation is high or rising as its value is not eroded in the same way as banknotes, savings accounts and government bonds)

 

The EIS fiscal advantages are:

 

• 30 per cent income tax relief (on investments up to GBP1m per tax year)

• No capital gains tax (provided the investment is held for three years minimum)

• 100 per cent inheritance tax relief (provided the investment is held for two years minimum and is held at the time of death)

• CGT deferral (CGT on other gains may be deferred by “rolling over” these gains into an EIS investment)

• Relief for losses (losses made on an EIS, if any, after taking account of any income tax relief received, may be offset against either income tax or capital gains)

• Carry back provision (investors may have an investment made in one tax year treated as if it were made in the previous tax year and for EIS income tax relief to be claimed in that earlier year)

 

“TWEIS successfully achieves capital growth for its investors by trading in fine wine and is raising additional funds to further develop its trade. The company has secured advance assurance of continued EIS qualification from HMRC. Investments should, however, not be driven purely by tax advantages and it is important that investors understand the underlying risks involved. At TWEIS, we have the benefit of using a tried and tested methodology for generating capital growth which we strictly adhere to. Any EIS fiscal benefits accrue to our investors in addition to those of investing in our profitable fine wine trading operation,” says Andrew della Casa, director.

 

TWEIS trades in physical stock of superior quality wines of limited production from established producers and of very good to outstanding vintages. TWEIS only trades in wines from Bordeaux and, as a low risk investment, does not trade in wines en-primeur (i.e. at the pre bottled stage of a wine’s life), when its price is typically highly volatile. In addition, trading fashionable or trophy wines, or wines which are near the end of their drinkable life, is avoided.

 

TWEIS is not an unregulated collective investment scheme and any advice received on investing in TWEIS is not covered by the Retail Distribution Review (RDR) restrictions on adviser charging.

 

The scheme manager, Anpero Capital, is also the manager of The Wine Investment Fund (TWIF), launched in 2003.