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Sky News request: Luxury watches - how can they be used in tax planning?

Journalist: Jess Sharp, Sky News

ended 04. March 2026

Hello

I hope you are well! 

I'm working on a piece for the Sky News Money blog about luxury watches and how people are turning to them as investment pieces for tax purposes since changes were made to capital gains and inheritance tax at the budget. 

How can luxury watches help reduce a tax bill? Have you noticed more people exploring them as an investment option? Tell me your thoughts below or email me at jessica.sharp@sky.uk if you think you can help! 

Have a great day
Jess 

 

2 responses from the Newspage community

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Editor
Nouran Moustafa
Practice Principal & IFA at Roxton Wealth
Luxury watches are often misunderstood in tax conversations. They can fall outside capital gains tax because they’re considered ‘wasting assets’, which makes them attractive on paper. But that doesn’t automatically make them a tax strategy.
Inheritance tax is different. Watches still form part of an estate unless properly gifted, and gifting comes with its own seven year rule considerations. So it’s not a loophole it’s an asset class.
I have seen more high net worth clients asking about tangible assets like watches, particularly where there’s distrust in markets or a desire for diversification. But they should be viewed as passion assets first, investments second. Values can be volatile, liquidity isn’t guaranteed, and pricing depends heavily on brand, rarity and condition.
If someone is buying a watch purely to reduce tax, they’re approaching it the wrong way. Tax efficiency should sit within a broader estate and investment strategy not be driven by trends.
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Jim Tannahill
Managing Director at Suttons and Robertsons
Many of our clients view high-end timepieces as part of their wider financial planning. In the UK, many watches qualify as “wasting chattels,” which can mean gains fall outside Capital Gains Tax rules, making them appealing as allowances tighten. That said, tax treatment depends on intent and frequent trading could be considered income, so proper advice is essential. Watches are of course, still subject to Inheritance Tax.
Strong brands such as Rolex and Patek Philippe, with solid provenance and condition tend to hold value best with values increasing around *125% over the past 10 years.
We’ve also seen a rise in the younger generation investing in watches as supported by a recent YouGov report.
One practical advantage of owning luxury assets is leverage. Established collections or even single examples can be used as security for short-term loans, allowing owners to address liquidity challenges or fund other opportunities while still retaining their assets.
*Knight Frank Wealth