Frequently Asked Questions

Purchasing cask whisky comes with no guarantees, as market conditions are influenced by numerous factors. Offering any form of guarantee would be misleading. While historically holding whisky casks over the medium to long term has proven lucrative, past performance is not an indicator of future results.

At Wine and Whisky Organisation, we operate on a straightforward principle: if you purchase whisky casks and hold onto them, the whisky will become older, scarcer, and potentially more desirable than when you first acquired it.

Each cask is owned by a single individual. If a cask is purchased for a child or grandchild, it is registered in the name of the parent, grandparent, or guardian and held 'on behalf of' the beneficiary. Since whisky is an alcoholic product, official ownership cannot be transferred until the beneficiary turns 18.

If a cask owner wishes to transfer ownership to another individual, this can be done at any time. The owner simply needs to notify us via email, complete a proforma, and upon completion, the certificate of title and full ownership documentation, including access to the online portal, will be transferred o the new owner.

The duration of cask ownership is entirely your decision. Before you purchase, we will discuss your goals in detail to tailor the process to your needs. Generally, we recommend holding a cask for a minimum of 5-10 years. However, the longer you hold onto it, the more the whisky matures, becomes rarer, and increases its potential value.

Your cask is fully insured against fire, theft, and accidental damage. Any policy excess is covered by Wine and Whisky Organisation ensuring that in the unlikely event of a claim, you receive the full market value of your cask at that time.

Once the purchase of your cask(s) has been completed, you will have received an invoice, a paid receipt and a certificate of title 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 filing 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.

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.

Wine and Whisky Organisation always recommended that you seek independent legal and financial advice in advance of any purchase.

To be classed a whisky the Alcohol by Volume (ABV) must remain above 40%. Whisky tends to be distilled between 60% and 70% ABV. Over the maturation period that ABV reduces (see Angel's Share below).

One of the terms you'll often hear in whisky distilleries is 'the Angel's 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.

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.

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.

A hydrometer will check the ABV (Alcohol by Volume), then the cask is weighed full and empty to establish its ABV, RLA and bulk litres. Once a regauge has been done, all cask information on the portal is updated. In addition, an updated valuation of the cask is provided.

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).

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 £31.64 per litre of pure alcohol) until the cask is removed from bond.

A bonded warehouse is a HMRC controlled warehouse where the goods stored and held are free from duty and VAT. Bonded warehouses are those which HMRC have granted an official WOWGR Licence (Warehouse Keepers and Owners of Warehouse Goods Regulations). This authorises a business to store and move goods with the payment of duty suspended from one bonded warehouse to another via a transport partner with a movement guarantee.

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.

For UK domiciled clients, their whisky will form part of their estate.* For married couples ownership will be transferred across, for example, from the deceased husband to his wife. All that is required is a copy of the death certificate together with the original certificate of title confirming cask ownership.

*Trusts and gifting allowances can be used to mitigate inheritance tax liabilities. We advise clients to seek independent tax advice in this regard.

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 execute 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.

Unfortunately, scams are rife in any industry where success is prevalent. Wine and Whisky Organisation urge all clients looking into cask whisky purchases 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*. A 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', and any firm reluctant or unwilling to provide a written delivery order.

*Financial Services Compensation Scheme.

A WOWGR Licence (Warehouse Keepers and Owners of Warehouse Goods Regulations) is a strictly governed certificate awarded to companies who have met HMRC's stringent requirements to store spirituous 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.

We have a team of experienced professionals in each of our core departments:

• Senior Management Team
• Accounts
• Marketing
• Administration
• Account Managers
• Risk Management

It is important to know that once purchased, the cask and the cask contents are owned by you and not Wine and Whisky Organisation. Your cask does not appear on our balance sheet or asset register as we have transferred ownership to you completely.

In short, this means that if the group went into financial difficulty or indeed went bust, your cask(s) do not form part of the official receivers assets and therefore cannot be sold by them to reduce debt. The cask is your 'freehold' property to do with what you wish.