You may have noticed a number of our products are flagged as 'Under Bond' on our website. This guide will explain what the term 'Under Bond' means, and what it ultimately means to you and your wine.
Buying Wine Under Bond
'Under Bond' Explained...
What does the term 'Under Bond' mean?
Wines that are 'Under Bond' have not yet had the Duty and VAT paid on them. These wines have been shipped directly from the winery to a secure bonded storage warehouse. If you wish to take your wines out of bond, then you will need to pay duty & VAT on them (see costs below).
What are the benefits of buying 'Under Bond'?
If you choose to store your wine 'under bond', duty and VAT will only be due once you withdraw the wine and take delivery. Should you choose to sell the wine on (under bond) at a later date, you will never pay Duty and VAT.
If you choose to have the wine delivered at a later date, VAT is payable on the original sale price of the wine and not the current market value.
Because Bonded Warehouses offer perfect storage conditions and a paper trail, “In Bond” or “Under Bond” status gives a guarantee of perfect provenance, so buyers of mature fine wines will always choose wines in bond over duty paid cases. If you would like to keep the option of selling a case in the future, we would recommend you buy it and keep it in bond to protect the value of your investment
How do I order 'Under Bond' wine?
We have a number of wines on our website where you can buy them 'Under Bond'. These products will be flagged on the product page as 'Under Bond', normally within the pack size. Simply checkout as you normally would do - the delivery method will automatically default to 'Store My Wines / En Primeur'.
What are the VAT & Duty costs?
If you choose to store your wine ‘under bond’, duty and VAT will only be due once you withdraw the wine and take delivery. Wine duty is a fixed charge and remains the same, regardless of the cost of the wine. VAT is a flat 20%* on top of the purchase price (not the current value) plus the duty.
*VAT and duty correct as of 1 February 2019.
How can I store my wine?
We can store all of your wine (and your reserves), in Vinothèque, the finest bonded warehouse in the UK. It is highly secure, air-conditioned, and is the perfect place for storing wine. Your wine will undergo a twice yearly condition check: once by London City Bond (who operate the warehouse) and once by our operations director and wine buyer. For your peace of mind, the wine is covered by our insurance and that of the bond at full replacement cost.