How to Legally Sell Wine EU: Tax, Export and Auctions

Anyone working out how to legally sell wine EU-wide has two things to understand first: the auction process, and the potential tax implications. Auction houses like Christie's act as agents for the seller, facilitating transactions between owners and buyers (Christie's, Section 1). Buyers pay a premium on the final bid price. At Christie's New York that premium is 25% of the hammer price, plus applicable taxes (Christie's, Buyer’s Premium for Wine). For international sales, buyers are solely responsible for obtaining any necessary export or import licenses, and for understanding local import restrictions (Christie's, Export/Import Permits). In the UK, according to GOV.UK, Capital Gains Tax may apply to personal possessions sold for £6,000 or more. However, "anything with a limited lifespan" is generally exempt (GOV.UK). HMRC clarifies that disposals of chattels which are wasting assets are exempt unless capital allowances were claimed (HMRC Capital Gains Manual).

How do auction houses facilitate wine sales?

Auction houses streamline the process of selling fine wine by acting as agents for sellers, connecting them with a global network of buyers. Christie's, for example, operates as an agent for the seller (Christie's, Section 1). Specialists at auction houses form estimates for lots based on prices recently paid at auction for comparable property. According to Christie's, they also consider condition, rarity, quality, and provenance (Estimates). These estimates are opinions and not predictions of actual selling prices (Christie's, Estimates).

Most lots are offered subject to a reserve. That reserve is the confidential minimum price the consignor will accept, and it will not exceed the low pre-sale estimate (Christie's, Reserves). Christie's marks any lot that carries no reserve with a specific symbol (Christie's, Reserves). The auctioneer may open bidding below the reserve and continue to bid on behalf of the consignor up to the reserve amount (Christie's, 3(h)).

Christie's charges buyers a premium on the final bid price. At Christie's New York, this buyer's premium is 25% of the final bid price for each lot of wine sold, with taxes payable on the premium at the applicable rate (Christie's, Buyer’s Premium for Wine). Christie's expects payment for purchases immediately after the auction. The full amount is due no later than 4:30 p.m. on the seventh calendar day following the sale (Christie's, 4(b)). The buyer assumes full responsibility for the lot at the fall of the auctioneer’s hammer (Christie's, 3(j)).

Sellers provide warranties, including that funds used for settlement are not connected with criminal activity, such as tax evasion (Christie's, 5.2). If bidding on behalf of another, sellers warrant that appropriate customer due diligence has been conducted on the ultimate buyer(s) (Christie's, 5.2). Christie's has the right to refuse admission or participation in any auction and to reject any bid (Christie's, 3(a)). The auction house can also cancel a sale on three grounds: if any seller warranties are incorrect, if it believes completing the transaction would be unlawful, or if the sale may damage their reputation (Christie's, 6).

What are the tax implications of selling wine in the UK?

Selling wine in the UK may have Capital Gains Tax (CGT) implications, depending on the sale price and the nature of the asset. According to GOV.UK, you may have to pay CGT if you make a profit when you sell a personal possession for £6,000 or more. However, you do not usually pay Capital Gains Tax on "anything with a limited lifespan" (GOV.UK).

HMRC's Capital Gains Manual provides further clarification. It states that disposals of chattels (tangible moveable property) which are wasting assets are exempt for the purposes of TCGA92, unless Capital Allowances were or could have been claimed (HMRC Capital Gains Manual). HMRC defines a wasting asset as an asset that "may naturally have a predictable life not exceeding 50 years" (HMRC Capital Gains Manual). Fine wine is generally considered a wasting asset due to its finite lifespan. You should consult a tax advisor for specific guidance on your collection.

Understanding these tax rules is part of a broader approach to fine wine investment.

What condition factors affect wine sales?

The condition of fine wine, particularly older vintages, significantly impacts its marketability and value. Christie's states that buyers of old wines must make appropriate allowances for natural variations in ullages, the condition of cases, labels, corks, and the wine itself (Special Notice).

According to Christie's, corks that are over 20 years old commonly begin to lose their elasticity. Wine levels can also change between the time of cataloguing and the sale (Christie's, Special Notice). There is always a risk of cork failure with old wines, potentially during or after shipment, and due allowance must be made for this (Christie's, Special Notice). Christie's states that under no circumstances can it accept a return, or make an adjustment of price or credit, after delivery. The only exception is the specific terms outlined in paragraph 5 of their Conditions of Sale (Christie's, Special Notice).

Christie's general policy is to open all wood cases and describe the levels of wine (Christie's, Special Notice). Ullage refers to the amount by which the level of wine is short of being full. Christie's describes these levels in the catalogue as far as inspection prior to the sale allows (Christie's, Ullage). For more details on fill levels, see our guide to wine ullage levels explained.

What are the shipping and export considerations for wine?

When selling wine, especially internationally, understanding shipping and export regulations is crucial, as these responsibilities often fall to the buyer. Property sold at auction may be subject to laws governing export from the US and import restrictions of foreign countries (Christie's, Export/Import Permits). It is the buyer’s sole responsibility to obtain any relevant export or import license (Christie's, Export/Import Permits). Local laws may prohibit the import or resale of some property in the country of importation. According to Christie's, such restrictions do not justify the rescission of any sale or a delay in making full payment for the lot (Export/Import Permits).

Christie's in New York ships wines to specific US states: New York, Florida, New Hampshire, and Wyoming (Christie's, Domestic Shipping). For New Hampshire, Christie's may not ship more than twelve (12) 9-liter cases or equivalent of wine to any one consumer in a calendar year. It also collects an 8% fee of the hammer price plus buyer’s premium (exclusive of sales tax) (Christie's, Domestic Shipping). For Wyoming, the limit is 108 liters to any one household within any twelve (12) month period. There the fee is 12% of the hammer price plus buyer’s premium (exclusive of sales tax) (Christie's, Domestic Shipping).

For shipments to other US states and international locations, Christie's releases property to a third-party shipper. It then collects New York sales tax at a rate of 8.875%, regardless of the destination, unless a tax exemption is on file or specific freight forwarder conditions are met (Christie's, Domestic Shipping, International Shipping). Christie's offers international shipping to Hong Kong and London. It notes that wines may take longer than 30 days to arrive, and that it does not ship them during months of extreme heat or cold (Christie's, International Shipping). For shipments to London, tax or VAT will be applied based on destination if you choose to ship onward from the UK warehouse (Christie's, International Shipping).

Buyers are responsible for picking up wine from Christie's New York facility at The Wine Cellarage within 30 calendar days of the auction (Christie's, Shipping and Collection of Wine). If purchases are not collected within 120 calendar days, a third party, The Wine Cellarage, will hold the lots at the buyer’s expense and risk (Christie's, Shipping and Collection of Wine).

The table below summarizes some key shipping details from Christie's New York:

Destination	Shipping Limit	Fee (of hammer price + buyer's premium)	Sales Tax
New Hampshire	12 (9-liter) cases/year	8%	Exclusive of sales tax
Wyoming	108 liters/12 months	12%	Exclusive of sales tax
New York	None stated	None stated	8.875% (if collected in NY)
Other US states / International (via 3rd party)	None stated	None stated	8.875% NY sales tax (unless exemption/freight forwarder conditions)

According to Christie's, the buyer must determine before bidding whether wines can be shipped from or into any state or jurisdiction. The buyer must also obtain any required permits or licenses (Christie's, International Shipping). This applies to regions like Tuscany or Bordeaux when the wine arrives there as an import. You can use a landed cost calculator to estimate all-in costs for international shipments.

When you are ready to sell, understanding the market is key. Explore our EU results to see live merchant prices on every wine.