The Wine’s Bond, In Bond…
The next James Bond movie has been delayed until 2018, so in the meantime we turn our thoughts to another, no less exciting Bond opportunity…
Most wines you buy are sold “duty paid, inc VAT”, which means a price that is inclusive of all UK taxes. However it is possible to purchase wines “in bond” and, unless you are lucky enough to have a large cellar or storage space for wine, or even if you do, there are some compelling reasons to buy cases and keep them in a bonded warehouse.
New vintages tend to be released in the first 6 months of each year and if you are buying fine wine they will often require cellaring for 2-10+ years before entering their optimum drinking window. As Duty on a bottle of still wine in the UK is currently £2.16 (£2.77 for a 75cl bottle of sparkling wine and £2.78 for fortified) with VAT on top at 20%, why pay this up front on wines that are not yet ready to drink? Especially as when you release the wines from bond, you will only pay the duty and VAT on the buying price, not on the current market price. After a few years buying wines in bond you realise that your buying “strategy” has changed from buying wine to drink to buying wine to replace the older vintage in your cellar that is now mature and drinking with a complexity and harmony that makes it even more compelling and worth more than you paid for.
Honest Grapes: License to fill (your cellar).
NB - Wine prices are often listed on websites “in bond” so you should always check to see whether or not taxes (and delivery) are included before assuming you have found a wine 20%+ cheaper than listed elsewhere.
Nathan and Tom on the topic of In Bond and Duty Paid.
Published on: October 12, 2015