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Cask costs
Initial and Ongoing ownership Costs
Being stockists of casks provides a direct source for clients, as opposed to purchasing from a whisky broker where a profit margin is usually added before selling the cask on to the client.
The initial costs comprise of the initial cask value as well as a modest administrative charge. Ongoing costs incorporate storage and insurance costs after a five year period of £85 per annum per cask. A cask regauge (cask MOT) of £85 is also recommended every three to five years and once undertaken updated cask values will become available.
Optional Costs
Additional costs can occur for the below opportunities regarding your cask:
- Re-racking a Cask - Where the contents of a cask are transferred from one cask type to another, for example, bourbon to cherry
- Drawing Samples - We can help arrange every aspect of this which is a popular option for upcoming special occasions.
- Bottling a Cask - Our division, Wine and Whisky Bottling, can manage every detail from the design of bottles and stoppers to the labelling and transportation of the product.
Wine and Whisky are more than happy and capable in meeting these requirements and can provide detailed pricing upon request for all the aforementioned options.
Tax Benefits
Capital Gains Tax
Whisky casks are deemed by HMRC as a 'wasting asset' and not expected to last more than 50 years. This means that profits from whisky casks are not subject to Capital Gains Tax for UK resident investors. This exemption also applies to overseas clients who are UK domiciled.
Inheritance Tax
The Wine and Whisky Organisation has numerous clients who purchase casks for their children and grandchildren. Whisky casks can be incorporated into an estate planning strategy and trusts and gifting allowances can help in reducing Inheritance Tax liabilities.
UK Doms
Clients living in the UK are assessed for Inheritance Tax (IHT) on their worldwide assets. It is crucial to seek independent tax advice, especially for overseas clients.
VAT and Duty
No VAT or Duty is due while a cask is 'in bond' at an HMRC licensed warehouse. VAT and Duty become payable when the whisky is taken out of bond, such as for sampling or bottling.
Confirmation
Cask Ownership Confirmation
Casks are sold to clients only after a comprehensive evaluation of the client's circumstances.
After agreeing on purchase objectives, the Wine and Whisky Organisation will send a written recommendation for the client to review, including specific reasons for our cask choices and full cask details.
If the client wishes to proceed with the purchase of a cask, a deposit or full payment is required with the balance settled within agreed terms generated and sent by our accounts department.
With this documentation, you will become the Ultimate Beneficial Owner of the cask and the bonded warehouse will list the Wine and Whisky Organisation as the licensed custodian with you retaining full legal ownership.
The Purchase Process
1. Initial Phone Call
4. Written Advice & Recommendation
1. Initial Phone Call
2. Due Diligence
4. Written Advice & Recommendation
1. Initial Phone Call
3. Cask Portfolio Structure
4. Written Advice & Recommendation
4. Written Advice & Recommendation
4. Written Advice & Recommendation
4. Written Advice & Recommendation
4. Written Advice & Recommendation
5. Office Visits / Zoom Meeting
5. Office Visits / Zoom Meeting
5. Office Visits / Zoom Meeting
6. Payment on Account
5. Office Visits / Zoom Meeting
5. Office Visits / Zoom Meeting
7. Ownership Confirmation
5. Office Visits / Zoom Meeting
7. Ownership Confirmation