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Scotch Whisky Cask Investment Guide
Download our essential guide into cask Scotch whisky purchase and what it could mean long-term for you, your children and grandchildren.
You must be 18 or over to order with Vintage Acquisitions
We are committed to bringing the most sought after, premium-grade, cask whisky to our discerning clients. With over a decade of industry experience we ensure our clients are only exposed to world famous Scottish distilleries that have a proven track record of excellence.
Our clients typically purchase a ‘young’ cask sourced from a renowned distillery, then simply wait for the cask to age and mature gracefully. The longer the wait the greater the increase in quality and desirability of the cask.
DOWNLOAD YOUR FREE GUIDE
Introducing Vintage Acquisitions experts in all aspects of Scotch Single Malt cask whisky purchase and sales.
✓ Over a decade of expertise
✓ Long standing relationships with award-winning distilleries
✓ Simplified process. We handle everything on your behalf
✓ Minimum of five years storage and insurance included
✓ All purchased casks are stored, inspected and insured under our HMRC licenses
✓ Choice of 6 flexible exit strategies
✓ Option to draw bottles from the cask for special occasions
✓ Not subject to stock market volatility
✓ Capital Gains Tax free
✓ Estate planning opportunities
HOW DOES WHISKY COMPARE AGAINST TRADITIONAL ASSETS?
Tangible assets have long been popular among banks, hedge funds, and the mega-rich as a way to hedge against economic instability and recessions.
Gold and precious metals, antiques, art and jewellery are sought and bought in times of economic struggle and uncertainty. Add Scotch whisky to that list!
Whisky by its pure nature can’t help but improve the longer it is held in the cask and therefore, it makes absolute sense that while it ages and improves, it also increases in value.
It is also no surprise that this ‘Capital Gains Tax Free’ asset is forever growing in popularity and stature.
|Asset Class||Min/Max?||*CGT Payable?||Linked to indicies||Easy to encash?||High Maintainance?||Directly affected by base rates?||Bid offer spread/Set up fees?||**AMC’s|
*Capital Gains Tax **Annual Management Charges
THE WHISKY BUYING PROCESS
WHAT TO EXPECT WHEN BUYING A CASK
Initial telephone call with a member of our team to establish your needs, budget and answer any questions you may have.
We match your requirements to our stocklist and present some options by email for consideration and further discussion.
Once you have decided on the cask(s) that suit your needs and budget we will invoice you. Once settled you will receive an ownership pack including the certificate of title for your cask(s).
Your cask will be held in one of our secure HMRC licenced warehouses. You will then be enrolled into our exclusive Vintage Whisky Club.
As a cask owner you will be granted access to the members area of our website where we will keep you updated intermittently on your cask(s) portfolio.
"Too much of anything is bad, but too much good whisky is barely enough"
Scotch Whisky Cask Ownership Guide
Download your free guide about 'Scotch Whisky Cask Ownership'
Request your free copy of the Vintage Acquisitions ‘Scotch Whisky Cask Ownership’ guide to explore the key facets of the market.
* You must be 18 or over to order with Vintage Acquisitions
"Read our everything you need to know guide for owning cask whisky."
Within this complimentary guide, you’ll learn:
✓ A message from our founder
✓ About Vintage Acquisitions
✓ Products & services
✓ Reasons to buy
✓ Benefits of whisky cask purchase
✓ Whisky facts
✓ Choosing the right cask(s)
✓ Whisky by regions
✓ The purchase process
✓ An appreciating asset
✓ Client testimonial
✓ Flexible exit options
✓ Storage & provenance
✓ Frequently asked questions
Frequently Asked Questions
What is ABV?
ABV stands for ‘Alcohol By Volume’ which is the standard measure of how much alcohol is contained in any given volume.
Why is cask whisky Capital Gains Tax Free?
Whisky casks are classed by HMRC as a ‘wasting asset’ and are not subject to Capital Gains Tax. Wooden whisky casks are naturally porous, meaning a very small amount of whisky evaporates each year and some is absorbed by the wood, normally no more than 2% (the angel’s share). A wasting asset is an asset with a predictable life of 50 years or less and due to the evaporation, it is highly unlikely the life expectancy of your cask will exceed 50 years.
What is the angel’s share?
One of the terms you’ll often hear in whisky distilleries is “the angels’ share”. When whisky is slowly maturing in its cask, a small amount of whisky evaporates through the wood and into the atmosphere. This can be as much as 2% per year, but it’s rarely as much as this.
What does OLA/RLA mean?
OLA stands for ‘Original Litres of Alcohol’ and RLA stands for ‘Regauged Litres of Alcohol’. OLA refers to the number of litres of pure alcohol which were initially placed into the cask and RLA represents the litres of pure alcohol remaining in the cask after a regauge has been implemented, checking the health, contents and value of your cask.
What are bulk litres?
Bulk litres refer to the entire litres of liquid in a cask, the combined total of pure alcohol and liquid. A cask filled with 200 bulk litres at 64% ABV would have 128 litres of pure alcohol (64% of 200).
What is duty suspension?
When your cask is being stored or transported between bonded warehouses, it is held and transported under duty suspension. This means you don’t have to pay duty on your cask, which is the tax levied by HMRC on alcohol (currently £28.74 per litre of pure alcohol) until the cask is removed from bond.
What is a HMRC licenced warehouse?
A bonded warehouse is a HMRC controlled warehouse where the goods stored and held are free from duty and VAT. HMRC licenced are those which HMRC have granted an official WOWGR licence (Warehousekeepers and Owners of Warehoused Goods Regulations). This authorises a business to store and move goods with the payment of duty suspended from one bonded warehouse to another.
What is a WOWGR?
A WOWGR licence (Warehousekeepers and Owners of Warehoused Goods Regulations) is a strictly governed certificate awarded to companies who have met HMRC’s stringent requirements to store spiritous beverages and intermediate products, duty suspended in excise warehouses. This licence is not available to the public, but we have passed the strict checks and have been awarded one and although the cask is legally yours, we will be your duty representative/custodian of the cask(s) in the eyes of HMRC.
How long should I hold my cask?
How long you hold your cask is entirely up to you. We will discuss this with you in detail before your purchase so we can tailor everything to your needs, but usually we say a minimum of 5-10 years. However, the longer you hold, the more the whisky improves, the rarer it becomes and larger are the potential returns.
What happens if I die?
The certificate of title and associated paperwork you receive from Vintage Acquisitions confirms legal ownership of your cask(s).
If you die your whisky casks will be added to your total estate and assessed by HMRC. If you have made a will, you will be able to determine who the beneficiaries of your estate will be and by how much they will benefit. Vintage Acquisition recommends that you seek professional independent financial advice in this regard.
Is there a minimum purchase price?
No. Depending on the stock held at the time, the minimum purchase price is the price of the lowest value cask at the time the inquiry is made. This price could vary on a daily basis but has no minimum.
Is Cask Whisky Regulated?
No. Cask whisky comes under the control and regulation of HMRC. Cask whisky is classed by HMRC as a ‘wasting asset’ and is not regulated by the Financial Conduct Authority (FCA) who govern ‘regulated’ financial investments. Vintage Acquisitions always recommend that you seek independent legal and financial advice in advance of any purchase.
What Happens if Scotland gains Independence?
Scotland has been part of the United Kingdom since 1st May 1707. The Scottish people voted against independence on 18th September 2014. Given that Whisky makes up 70% of Scottish food and drink exports the consensus of opinion is that post-independence they will be keener than ever to do trade deals wherever they possibly can which would clearly include the UK. Britain also maintains a very special relationship with the US, by far the biggest importer of Scotch in the world.
How do I know my cask exists?
Once the purchase of your cask(s) has been completed, you will have received an invoice, a paid receipt and a certificate of title (wet signed and stamped by the founding director) or a Delivery Order (DO) to your own private account, if you have one. All these corresponding documents include the cask’s unique number and recent regauge or filling data (OLA/RLA, AYS, ABV, etc.). On becoming an owner you can visit your cask (warehouse dependant), draw samples and you will receive documentation and correspondence confirming the recommended ongoing care of your cask.
What about Scams?
Unfortunately, scams are rife in any industry where success is prevalent. Vintage Acquisitions have been trading for 10 years and urge all clients looking into cask whisky purchase to undertake as much due diligence as possible. In generic terms potential clients should seek independent advice and ensure that full and accurate checks are made when investigating who to deal with. The sale of cask whisky is not regulated by the FCA and therefore purchases are not covered under the FSCS*. Cask whisky purchase is however regulated by HMRC. In simple terms clients should avoid firms advertising spectacularly high returns, offering any claims of ‘guaranteed returns’, firms not on the WOWGR trading register and any firm reluctant or unwilling to provide a written delivery order.
*Financial Services compensation Scheme
Are there any guarantees?
The purchase of cask whisky does not come with any guarantees. Offering any type of guarantee would be misleading as there are so many factors that influence markets. Historically purchasing then holding on to whisky casks over the medium to long term has been lucrative however past performance is no guide to the future. Vintage Acquisitions work on the very simple principle that if you purchase whisky casks and are prepared to hold on to them the whisky you purchased will be older, in shorter supply and therefore more desirable than when you first made the purchase.
What happens if Vintage Acquisitions gets taken over or collapses?
In either scenario the bottom line is that you own and can evidence the fact that you own specific individually numbered whisky casks held under bond at HMRC regulated warehouses. The casks are yours and form part of the inventory of Vintage Acquisitions. They are not ours to sell. In the unlikely event that Vintage Acquisitions collapsed your cask cannot be sold to satisfy receivers or creditors. The cask remains your property.
How is my cask insured?
The full value of your cask is insured for fire, theft and accidental damages. Any excess on the policy will be met by Vintage Acquisitions so in the unlikely event of a claim you would be entitled to the full market value of the cask at the time of the claim.
What happens if my cask breaks?
If your cask breaks you would be insured under the ‘accidental damage’ section of your insurance policy to the full value of your cask at the time of the claim.
You must be 18 or over to order with Vintage Acquisitions
*Vintage Acquisitions are not tax experts or financial advisers. If you need further clarification or advice on cask whisky purchasing please contact your financial adviser and tax specialist.
1. Vintage Acquisitions are not tax experts. If you need further clarification or advice on cask whisky purchase please contact your tax specialist or accountant.
2. We are not financial advisers, and the information in our brochure and on our website is purely to inform you about the nature of the Scottish whisky industry so that you can make an informed decision should you choose to buy a cask. We recommend you to speak to your financial adviser in the first instance.
3. The value of cask whisky can go up as well as down. If you wish to speak to someone regarding the cask buying process or any points raised in this guide or our website, please don’t hesitate to contact us.
4. If you wish to sample or bottle your cask. Please be aware duty and VAT will be due before the whisky has been bottled and the finished goods are removed from the HMRC licence warehouse. This remains the responsibility of the cask owner.
5. It is advisable to perform regular health checks on your cask every 3 years. Cask services are chargeable to the client, these include, regauging, samples and photographs.
6. Our WOWGR certificate (Departmental Trader Registration Number: 127 4643 13/0001) issued by HMRC, authorises us to store cask whisky in any appropriately approved Scottish excise warehouse. Therefore, we store casks of whisky across a number of distilleries and HMRC approved facilities in Scotland.