Fine wine news

Fund manager Anpero has become the first company of its kind to offer an enterprise investment scheme (EIS) involving fine wine.

The move could provide a huge vote of confidence for the wine investment market, which has suffered a dip in trading at the end of 2011.

Anpero hopes to raise £2 million to trade top-rated Bordeaux wines.

The Financial Times reported that HM Revenue & Customs is likely to qualify the fund as an EIS, giving investors tax advantages such as 30 per cent income tax relief on the sums invested, capital gains deferral and exemption from inheritance tax after two years.

Wine investment is not a new venture for Anpero, however. The company has been running a longer-term investment fund since 2003. The difference is that the new scheme will trade wines more actively.

Recognising recent price falls on the Liv-ex Fine Wine Exchange, director of Wine EIS Andrew della Casa, remains upbeat.

He told the news provider: "Data going back decades shows traditional demand [for Bordeaux], on which our investment philosophy is based, does not change, irrespective of economic cycle - we saw this in 2008 and 2009.

"This makes us pretty relaxed about what happens with new demand - everyone is talking about China, but it is not a new thing. We are not relying on tax relief for our return."

Returns, the company said, will be determined by supply and demand factors that remain unchanged.

The new venture by Anpero could be the first of many. EIS provides an investment based on lower-volatility assets, from fine wine to solar panels, and they have the tax benefits.

However, issues surrounding government subsidies in the solar market could drive more EIS schemes to fine wine, boosting the market as a whole.

And while top-rated Bordeaux is going through a dip in the market, interest in Burgundy and second growths is keeping trading constant.

Posted by Paula Henderson