Chateau Carbonnieux | Bordeaux 2018 En Primeurs

Terms & Conditions

  1. Services Overview
  2. Corkr Fine Wines offer clients a complete composite Fine Wine Investment Portfolio Management Service.
  3. ‘Fine Wines’ are defined by Corkr Fine Wines as; “Wines with strong demand on the secondary market, ability to improve in bottle and a long track record of excellence.”

III. Corkr Fine Wines invest in Fine Wines on behalf of the client and will invest the full value of any investment, less any Management Fees in Fine Wine.

  1. The sole purpose of Fine Wine Investment is to increase the total value of an investor’s portfolio.
  2. Corkr Fine Wines will always act in an investor’s best interests.
  3. Corkr Fine Wines proactively manage an investor’s Fine Wine Portfolio by trading Fine Wines from within an investor’s portfolio. Corkr Fine Wines will not require investors consent in order to buy or sell wines from their portfolio while acting on their behalf.

VII. Corkr Fine Wines may, at their own discretion, choose to buy wines with the intention of long-term gains OR for short-term gains. This is dependent on the current nature of the Fine Wine market and will form part of a spread of an investor’s Fine Wine portfolio.

VIII. When instructed, Corkr Fine Wines will liquidate all or part of an investor’s portfolio. (See Section 4 on Investment Liquidation)

  1. All Fine Wines purchased by Corkr Fine Wines, will be the property of the named investor.
  2. Storage
  3. Corkr Fine Wines will store Fine Wines in a nominated storage account, under the title of the investor.
  4. All Fine Wines will remain the property of the investor.

III. All wine will be stored at London City Bond.

  1. Fine Wines will be fully insured by Corkr Fine Wines Ltd at the current replacement value, against any damages, breakage or loss.
  2. A valuation of Fine Wines will be provided to the investor yearly or by request. Valuations will be independently verified by the Fine Wine trading platform Liv-Ex.
  3. A full stock report of an investor’s storage account will be available on request at any time.

VII. The quantity, value and specific wines held on behalf of, and owned by the investor may change without their knowledge or consent.

  1. Fees

Management Fees

  1. Corkr Fine Wines will charge a Management Fee on all investment portfolios. This will be calculated at 15% of the full value of the investment, deducted, upfront from the investment.
  2. Additional investments will incur a full Management Fee of 15% based on the full value of the additional investment.

III. Liquidated funds will not incur any Liquidation Fees, except where subsequent liquidated funds are re-invested. In this case, a Management Fee of 15% will be charged, based on the full value of the funds re-invested.

Storage fees

  1. There are no storage fees for the first 2 years from the date of any initial investment, additional investment or subsequent re-investment.
  2. Any investments held longer than 2 years will incur a yearly storage fee of 1% of the current market value of the investment.

Liquidation Fees

  1. There will be no liquidation fees charged.

Annual Fees

VII. There will be annual Management Fee of 2% charged.

VAT

VIII. All Fees will be subject to VAT at the prevailing rate.

  1. Liquidation
  2. When instructed, Corkr Fine Wines will liquidate all or part of an investor’s portfolio
  3. Corkr Fine Wines will provide an independently verified, current Market Valuation of an investor’s Portfolio as a basis for any liquidation request.

III. In order to begin liquidation, an investor must instruct Corkr Fine Wines by specifying either a monetary value or percentage, based on the valuation provided.

Liquidation options

  1. The following options must form part of the instructions to Corkr Fine Wines.
  2. Funds requested within 10 working days, Corkr Fine Wines agrees to pay the current market value, less 15%.
  3. Funds requested within 60 working days, Corkr Fine Wines agrees to pay the full current market value.
  4. Where Option 1 is chosen, the ownership of wines to the stated value will transfer immediately to Corkr Fine Wines.
  5. Where Option 2 is chosen, the ownership of wines will transfer directly to the buyer of the wines once the transaction is completed.

VII. Investors may choose a composite liquidation solution, allocating a proportion of their total investment to either or all options.

VIII. Where investors choose to re-invest a proportion of liquidated funds, a Management Fee of 15% will be charged, based on the full value of any funds re-invested.

  1. Where the sum of each individual case of Fine Wine, valued at the current market value, does not exactly match the requested liquidation ratio, Corkr Fine Wines will attempt to liquidate Fine Wines within a reasonable level of accuracy.

Liquidation Example

  1. Tax & Liabilities

Inheritance Tax (IHT) & Transfer in the event of death

  1. For Inheritance Tax (IHT) purposes, an investor’s portfolio is classed as forming part of the value of an estate. It is valued at the current market value on the date of application, no matter how it is stored or in what quantity.
  2. In the event of death, Fine Wine assets contained within a portfolio and owned by the investor can be transferred to any number of named beneficiaries.

III. Once the ownership of all or part of a portfolio has been transferred, the value can be liquidated in line with the terms and conditions in Section 3.

Capital Gains Tax (CGT)

  1. Fine Wine can be considered a ‘Wasting Asset’ and therefore is exempt from CGT on profits from Fine Wine investments.
  2. For more information on the extent of CGT liabilities, please refer to the government Legislation, “Taxation of Chargeable Gains Act 1992”

Our Liabilities

  1. In the event of death of the management team, or a winding up of Corkr Fine Wines, all assets will be liquidated in line with the current market value and appropriate funds will be allocated to all investors.

Regulation

VII. The Fine Wine Investment market is not regulated by any authority such as the FCA and as such, would be regarded by many as a relatively high-risk investment. Any potential investors should undertake their own due diligence before investing money in Fine Wine.

VIII. We are legally not obligated to offer Financial Advice. All statistics, data and market trading history are presented for prospective client interpretation only.

  1. Corkr Fine Wines Ltd holds an Alcohol Wholesalers Registration No. (AWRS No: XGAW00000102643) and is therefore regulated by HMRC. The regulation came into force on 1st April 2017 and makes it compulsory for all alcohol wholesalers to be registered and fully compliant with HMRC regulations.
  2. Our Commitments

Best Execution

We will endeavour to work in the best interests for and on behalf of our clients and on the most favourable terms.

Complaints

Please contact us via investment@corkr.com or +44 (0)1502 676110. We will respond to the views of our clients and investors. We’ll always strive to respond positively to complaints, acknowledge mistakes and put them right.

Client Identification

We will undertake credit checks and identity checks before undertaking an agreement with any clients.

Data Protection & GDPR Regulation

We will adhere to all EU regulatory General Data Protection Regulations.

Marketing Communications

We may contact you from time to time to let you know about additional products and services from ourselves or our partner company Taversham’s Auctioneers Limited.

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