At first sight investing in fine wine seems to be a no-brainer.

The price of a basket of investible wines, such as the London International Vintners Exchange (Liv-X) Investibles Index, has easily matched or exceeded equity market indices over a ten-year period and at a much lower volatility.

Moreover, wine investments can provide significant diversification benefits to conventional portfolios.

Add the additional fact that in the UK wine is considered a wasting asset by HM Revenue and Customs (HMRC) and, as such, not subject to capital gains tax and the investment case for wine looks even more compelling.