Hi Mike,

In answer to your question:

> cellar somewhere. The question I have is, when I want to get the wine, how
> does the tax work? Do I pay the duty based on the original price of the
wine
> or will the new value of the wine be estimated for taxation?

then you pay the duty and VAT applicable at the time that you remove the
wine, but based on the original purchase price. So as an example I withdrew
a case of CDP that cost me £120 about 2 years ago from storage with Lay and
Wheeler (who I think are very reasonably priced for this service and very
nice to deal with) and had to pay the £14.29 per dozen duty and then VAT on
the total amount. If VAT or duty go up dramatically then I lose out from
having not paid duty at the time of purchase - but that's a gamble I'm
willing to take!

Storing in bond is an excellent idea for the 'long stocks' provided that you
have capacity to withdraw in cases and store at home for the drinking window
of the case - which maybe you haven't. You can pay extra for partial
withrawal I think but that does somewhat undermine the economics of the
situation.

As you are in London I believe that there are companies that allow you to
rent a 'space' and this is like an extension of your cellar, but I guess
that you'd need to keep the wine duty paid in that case - but if you do that
then at least you don't have any further costs to worry about other than
cellarage.

And is it worthwhile..well, ultimately that can only be up to you! To have
good wine for the future is it worth £8 per case per year? I think so!

Johnners.