Insights - 25 Jun. 21
How Whisky Cask Investment Works
How Whisky Cask Investment Works
So you’ve decided to invest in whisky casks? It’s a wise decision, not only is Scotch Whisky one of the safest and most reliable forms of investment around, particularly during a global pandemic, but investing in casks rather than bottles also has several advantages.

Not only is it an easier way to invest at scale but it’s a much more hands-off form of investment requiring a lot less of your time and effort, with your casks maturing and growing in value from the moment you purchase them.

But how does whisky cask investment actually work? Here’s how:

Buying your Cask

Of course, the first step in any investment is to do your research and decide what to invest in. With Scotch Whisky this can be the really fun part as you sample different options and decide which is right for you, then it’s time to make your move and use the Whisky Investment Partners secure online portal to complete your purchase.

With this comes all of the information you need about cask storage and insurance, including a certificate of ownership which will include your unique cask number that relates to the exact distillery where the cask is stored, along with the technical information about your cask (the wood type, the distillery of origin, the spirit name inside the cask and its ABV).

Once you own your cask, you won’t need to find somewhere to store it securely while it matures, because we will house it in our duty-suspended bonded warehouse, which has been verified by the HMRC. This means you don’t need to pay excise and duty on your casks while they mature and you won’t even need to pay this if you sell them on, only if you decide to bottle your whisky yourself.

Managing your Cask

All whisky casks we look after are fully insured against damage, full loss and theft for a number of years from the start of your ownership. During the maturation process, you are welcome to visit the warehouse by appointment. However, you can also manage every aspect of your cask investment via our online portal from the comfort of your own home.

You can also remove your cask from the bonded warehouse whenever you like, but it’s worth noting that you will then be liable for any customs & excise duty and VAT due from that point onwards, so generally it’s advisable to leave your cask to mature and then look at your exit options.

Selling your Cask

If you purchased a New Make Spirit, it cannot legally be sold as Scotch Whisky, until it’s been matured for  three years and one day of maturation. After this point, you are free to look at selling or bottling your whisky from the cask, though you may also decide to allow it to continue to mature for several years after this point, which can have a positive impact on its value.

Whisky Investment Partners can help you explore your options for making a profit on your cask investment, from selling in our marketplace or utilising our connections to help you find a buyer. You also have the option to bottle your whisky yourself for either sale or private consumption, while there are also independent bottlers and blenders and auction houses who may be interested in the contents of your cask.

However you decide to sell on your whisky cask investment, you will have seen the benefits available from investing through Whisky Investment Partners, with our passion and expertise ready to help you make the most of your journey.

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