| Collecting refers to the purchase of assets which it is | | | | As on all cars, capital gains are not taxable and |
| hoped will increase in value, such as antique furniture | | | | compared with ordinary cars there should be no |
| and paintings. | | | | depreciation. |
| The disadvantage of 'collectibles', as they are | | | | Insurance may be difficult and you probably need to |
| sometimes called, is that they produce no income all | | | | be a mechanic as repairs are expensive. |
| the return is in the potential increase in value and that | | | | It might be possible to earn some income by hiring |
| value is usually subject to fashion and whims. | | | | out, for example for weddings. |
| On the other hand, it can be argued that they give | | | | Stamps |
| pleasure that is the return. | | | | Most serious collectors specialise. A good collection |
| Collectibles can be damaged or stblen, so they must | | | | can be assembled for £2,000. |
| be insured at current replacement value, which means | | | | Low value stamps tend to stay low in value only |
| getting regular valuations: these can cost around 1% | | | | expensive ones appreciate. |
| of value each time. It is also a good idea to keep | | | | British sets currently issued are valued at only 80% |
| coloured photographs and written descriptions. | | | | of face value so are not a good investment. |
| In the event of a dispute about value, you can get | | | | If you are selling a collection of stamps, perhaps |
| help from the appropriate trade association. | | | | inherited, and they are muddled, do not try to sort |
| Buying and selling at auctions involves the payment | | | | them out first as they are more exciting to an |
| of high commissions (buyers 15%, perhaps, and | | | | enthusiast in their mixed up state and so of more |
| sellers 10%). | | | | value. |
| Buying in a shop avoids commission, but how far can | | | | Wine |
| you trust them to buy and sell at accurate values? | | | | The most established markets are vintage ports and |
| For all collectibles, you do need to be aware of value | | | | Burgundy and Bordeaux wines. |
| and you should not buy for investment unless you | | | | You can start with as little as £500, which will |
| have a lot of knowledge of your chosen category. | | | | buy three cases (12 bottles to a case) at around |
| Art and antiques | | | | £150 each, but you must be prepared to keep |
| A London art dealer recently said that art has not | | | | them for a long time. Better to start by using a |
| kept pace with conventional investment over the last | | | | dealer rather than bidding at an auction. |
| 20 years. | | | | You can of course make a larger investment to start |
| Sothebys have an art index which shows changes in | | | | with, intending to drink some, sell some and buy |
| value over 1, 2, 5 and 10 years, by category | | | | some more, but try to drink your loss items rather |
| (paintings, ceramics, furniture, silver). | | | | than the profitable ones! |
| Classic or vintage cars | | | | Value is greater if bought and kept 'in bond' as duty |
| Classic cars are post 1939, over 20 years old. Vintage | | | | and VAT are not paid. Storage costs about £5 |
| cars are pre 1939. | | | | a year for each case. |