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Example of Wine Trading

JUNE 1996 STOCK CELLAR INVEST£3375 
in  5 cases CH. Latour 1995 £685 each
JUNE 2003 –   VALUE OF CELLAR £7425
Ch. Latour 1995 now worth £1485  each
TAX FREE  GROSS PROFIT 120%

You now have 4 options

Sell all 5 cases of Ch. Latour 1995, and purchase 5 cases Ch. Latour 2002 for a total of £4100 (£720 each) increasing the capital value of your cellar by 21.48%. Then take £2970 tax free which is the equivalent of 80% of the capital invested.

Sell all 5 cases of Ch. Latour 1995, and re-invest the profit to purchase Ch. Latour 2002 and other wines to increase stock holding and maximise the profitability of your cellar, valued at £7425, by realising and reinvesting your 120% profit.

Sell only 3 cases of Ch. Latour 1995, and purchase 5 cases Ch. Latour 2002 for a total of £4100 (£720 each) increasing the capital value of your cellar by 21.48%. You can now enjoy 24 bottles of the worlds finest wine valued at £123.75 a bottle for free! And have a tax free profit of £197 after paying the VAT and Duty on the wine you are drinking

Sell all 5 cases and enjoy a tax free profit of 120% over a short 6 year term.

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