FAQs - Investing in Whisky
Investment and Logistics
Can I meet the portfolio manager?
Absolutely! The portfolio managers are available for face-to-face meetings, or we can facilitate virtual meetings via Zoom or Google Teams.
How can I insure my cask?
Your new cask or premium matured cask is automatically stored in an HMRC bonded facility or at the distillery and fully insured for 5 years. Documents confirming this will be sent to you post-purchase.
Will I have to pay UK Capital Gains Tax or VAT/Sales Tax?
While the whisky remains in the cask, no duty or tax is applicable. When selling your physical portfolio, no Capital Gains Tax is payable, as whisky is considered a wasting chattel under UK law. Bottling before selling may incur VAT.
How is the whisky stored?
The whisky is stored in wooden casks either on-site at partner distilleries or in a bonded warehouse.
What about evaporation?
Cask whisky evaporates at just under 2% per annum, known as the Angels' share. Evaporation is part of the maturation process. Quality controls ensure your whisky maintains its integrity.
Can I bottle my cask?
Yes, we can arrange bottling, labeling, and packing. However, duty and VAT must be paid before bottles leave a bonded warehouse.
How do I know my cask is genuine?
We provide a unique cask number for all purchases, along with necessary ownership documentation. Casks are secure and cannot be forged or faked.
How do I exit when I want to sell out?
Upon your instruction, we offer various routes, including selling to another client, trading on the open market, purchasing the cask back ourselves, or utilizing our auction services.
Investment Considerations
Why buy whisky?
Whisky offers a unique investment opportunity as it's not subject to market volatility like equities and bonds. The product itself cannot go bust, making it an attractive option.
What will my return on investment be?
Financial modeling varies per cask, but recent statistics indicate returns averaging between 8-12% per annum.
What are the risks?
While the main risk is a sudden drop in demand, the whisky industry's steady growth and government support mitigate this. Past performance and careful industry management lessen the risk.
What is a cask?
A cask is the wooden container in which whisky matures. Various types, including those used for American Bourbon, sherry, wine, and tequila, contribute to the maturation process.
What is Single Malt Scotch?
Single Malt Scotch comes from a single distillery and is made from 100% malted barley. The age on the label refers to the youngest whiskey in the blend.
What is a blended whiskey?
Blended whiskies mix single malt whiskeys from various places, skillfully blended by a Master Blender to ensure consistency and quality.
What is the difference between malt and grain whisky?
Malt whisky is traditionally crafted, while grain whisky is produced on an industrial scale. Single grain whisky is often blended with malts to create the popular blended whisky.