“In bond” refers to wine that is stored in a government-authorised bonded warehouse, without duty or VAT (Value Added Tax) having been paid. Bonded warehouses are strictly controlled environments — designed to keep wines in optimal conditions while they mature, are stored for investment, or await resale.
Do You Own the Wine?
Yes, you own wine held in bond where you have clear legal title to it. The wine remains stored at the bonded warehouse, with duty and VAT suspended. While in bond, it can be sold or transferred to another collector or merchant without you first paying these charges. Ownership should always be clearly documented, with records identifying the specific wines, cases and vintages held on your behalf.
Why Use Bonded Storage?
Bonded storage offers several benefits for wine collectors and investors. It allows you to delay paying duty and VAT while the wine remains in bond, and if you decide to sell rather than take delivery, these charges may not become payable by you. Wines that have remained in professional bonded storage can also offer buyers greater confidence in their provenance and storage history, as they have been kept in secure, temperature-controlled conditions. This can make in-bond wines particularly attractive on the secondary market, helping to preserve their condition and marketability. For collectors without suitable cellar facilities at home, bonded storage also provides a secure and professionally managed environment for the long-term storage and ageing of wine.
When Is Duty and VAT Paid?
When wine is removed from bond for UK consumption, the applicable duty and VAT become payable. The amount due will depend on factors including the wine’s alcoholic strength, volume, value for VAT purposes and the applicable rates at the time of removal.
Considering Bonded Storage?
Brightwells works with a number of established bonded warehouses across the UK. If you are considering opening your own bonded storage account, our Wine Department would be happy to guide you through the options and put you in touch with a suitable provider.