Wealth managers are anticipating an increase in demand for fine wine in 2025, driven by its exemption from capital gains tax (CGT), according to WineCap.

The fine wine investment company’s 2025 UK Wealth Report found that 96 per cent of wealth managers expected demand for fine wine to grow in 2025, more than any other luxury asset.

Eight in 10 (80 per cent) respondents said that fine wine’s exemption from CGT was driving renewed investor interest amid tightening tax rules.

Fine wine is classed as a ‘wasting asset’ and therefore exempt from CGT in the UK, which WineCap said made it more attractive at a time when the government was reducing tax-free allowances and raising effective rates.

This increased demand was evident in higher-risk strategies, where 26 per cent of portfolios now include fine wine, up from 12 per cent in 2024.

However, the report noted that seasoned collectors were beginning to liquidate long-held assets, which created an increased supply and resulted in average portfolio allocations falling from 10.8 per cent in 2024 to 7.8 per cent in 2025.

WineCap argued that this rebalancing was creating “fresh opportunities” for new investors, particularly Millennials and Gen Z investors, who tend to prioritise tangibility, transparency, and long-term performance.

The report also found that fine wine was entering retirement planning for the first time, with allocations hitting 6 per cent in 2025.

Commenting on the findings, WineCap founder and CEO, Alexander Westgarth, said: “Fine wine is no longer reserved for collectors and connoisseurs – year after year our research shows that it is being viewed as a serious asset with strong fundamentals for growth, and valuable tax advantages.”

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