A Guide to Buying Cask Whisky
A guide for investors and collectorsWe're put together a basic FAQ to guide you through the process of buying your first cask.
How do I buy a cask of whisky?
Buying a cask of whisky is a relatively simple process when you partner with Hedonism Wines. You can contact us here with your requirements and we'll get to work putting an offer together. Once you're happy with the offer, we'll take payment and set to work arranging for the cask to be moved from wherever it is held to your personal storage account.
Do I need a storage account to buy casks of whisky?
Yes. It's crucial that the you have your own storage account so the cask can be registered in your name and you are the legal owner. We can help you setup a storage account in partnership with Volpe and Castello, an HMRC regulated whisky cask storage facility around an hour from Edinburgh.
Can I have the cask delivered to my home?
No. Your cask remains in a bonded warehouse, in an HMRC-registered storage facility until the time comes to sell it or bottle it.
Do I have to pay for storage of my casks?
Yes. Our storage partner will bill you monthly for storage. The cost is around £20 per cask per month.
Can I get a sample of my whisky as it ages?
Yes. Samples can be obtained for around £25. Sampling is important to check how your whisky is maturing, but also if you're looking to sell your cask. Most buyers will want to taste the liquid before they make an offer to buy.
Do I need to insure my cask?
Yes. It's very important to insure your investment. Our storage partners Volpe and Castello offer various packages depending on the level of insurance you're comfortable with. These are charged annually.
Can I visit my cask?
Yes. Visitors are welcome to visit casks stored with Volpe and Castello at their secure facility around an hour from Edinburgh. They require 24 hours' notice, but visits can easily be arranged.
What ownership proof do I have?
Hedonism Wines will always issue 'delivery orders' for casks sold to clients. This, along with the invoice for the purchase, is the proof that you own the cask. This means that if either Hedonism Wines or Volpe and Castello go out of business, you'll still have rights to your cask. We're not planning on going out of business, but it's good to have the piece of mind!
What licenses are required to sell whisky casks?
Hedonism Wines is registered with HMRC to retail alcohol, but also as part of the 'Warehousekeepers and Owners of
Warehoused Goods Regulations (WOWGR)' scheme. Additionally, we're a registered member of the Alcohol Wholesalers Registration scheme.
What are my exit strategies?
There are four clear exit strategies for our customers. Firstly, we could help you sell your cask on the open market; secondly, we would make an offer to buy the cask from you; thirdly, we would help you send the cask to auction; and fourthly we would help you with the process of bottling the cask.
Are there any tax benefits?
Yes. Profits from the sale of whisky casks held under bond are exempt from capital gains tax as HMRC classify them as a "wasting asset".
Additional, all casks are help in duty and VAT suspense in a government regulated bonded warehouse. This means VAT and duty is only payable when the whisky is bottled and removed from the warehouse. In this sense, it's very similar to buying wine "En Primeur".
Hedonism Wines are not financial advisors, we recommend you seek advice from a tax professional to fully understand the tax implications within your specific jurisdiction.
Are there any risks?
If you're buying for investment purchases, whisky casks are the same as any other investment - their value can go down as well as up. While whisky has a good track record of increasing in value, that's no guarantee of future performance. It's also worth remembering that whisky cask investments are not regulated in the UK. That's why partnering with an established business like Hedonism Wines with a track record in the field is important.