Storage & Insurance
Included in the price is a 5-year storage and insurance charge. Further charges will be made thereafter on an annual basis which will be charged at the current rate at the time. The Company will insure your cask under its group policy.
We store casks with other Whisky Finance Company stock at one of our warehouses. Unfortunately, we are unable to guarantee that private casks can remain on Whisky Finance Company property. Please note it is the responsibility of the cask owner to advise the company of any changes of address so that storage and insurance are kept up to date.
Please direct all correspondence regarding the purchase of casks to Whisky Finance Company, 1 Knightsbridge Green, London, SW1X 7NE. If you have any questions, please contact: firstname.lastname@example.org.
You are welcome to visit your cask, but this is by appointment only.
We recommend bottling at ten years of age, but the whisky can be left to mature for longer if required. As we do not own a bottling plant, we cannot bottle your whisky for you. However, we can recommend bottlers upon request. Bottling charges currently amount to approximately £29 per case of 12 bottles. This price includes bottles, corks, capsules, cartons and basic labels.
If you are considering bottling your whisky, we would recommend the following procedure:
- Order a sample from your cask. Current sample charges are £50 for a 200ml sample, including UK taxes and postage and packaging. Please contact us for a quote if you live overseas as the postage and packaging charge will differ.
- Decide if you wish to have your whisky bottled and contact one of the bottlers to discuss the bottling. The bottlers will inform you about their prices and discuss the details with you.
- Inform us that you wish to have your cask bottled, which bottler you want to use and when you would like to have your whisky bottled. For operational reasons, we would ask you to let us know as soon as possible if you wish to have your cask bottled so that we can co-ordinate cask removals at convenient times.
We recommend bottling at 46% alcohol, but whisky can be bottled to a minimum of 40%. This whisky can also be bottled at cask strength (between approximately 55% and 60%, depending on the age of the whisky) — the cask will yield fewer bottles if the whisky is bottled at cask strength.
Approximately 2% of the cask contents evaporate per year (the so-called “Angels’ Share”). At the same time, the strength decreases. There may be spillage when the contents of the cask are bottled, but this should not exceed 1% of the total volume. Please note the evaporation rate of each cask will vary and the losses may be higher than outlined above.
Number of Bottles
The amount of bottles will depend on several factors such as maturation rate, age of the whisky, etc. On an approximate basis, you should assume that a hogshead (250 bulk litres), bottled at 46% alcohol volume, in 70cl bottles, after 5 years would yield 360 bottles and a barrel (200 bulk litres) would yield 280 bottles.
Partial Bottling & Further Warehousing
Some of the bottlers may be able to bottle part of a cask and store the remainder on their premises. Please ask the bottlers directly about this and request information about further storage from them.
Duty & VAT
Duty is the charge made by HM Revenue & Customs based on the percentage of pure alcohol. The market rate in the UK is £28.74 per litre of pure alcohol (valid from January 2019). This is £111.05 per case of 12 bottles (70cl) at 46% alcohol volume.
UK VAT is currently 20%. It is charged on the purchase price of the whisky together with the Duty rate prevailing at the time of removal from bond and the storage and insurance charges paid over the years. Both Duty and VAT are due after the cask has been bottled and the finished goods are removed from the bonded warehouse.
Taxes are subject to change by the UK government. Various rates of Duty apply throughout the EU and the rest of the world.
As of the 23rd November 2012, Single Malt Scotch whisky by law (Scotch Whisky Regulations 2009), can only be exported from Scotland in bottled form, labelled for retail sale. If the whisky is exported under bond, Duty and VAT can be suspended (but not avoided) subject to the exporter being registered for both Duty and VAT, and is registered as a bona fide exporter. Duty and VAT would be payable in the country of final destination at the rates prevailing in that country at that time. It is up to the cask owner to find a suitable importer in the destination country and to arrange the export, but the bottling plants may be able to assist with this. Please note it is the responsibility of the cask purchaser to be aware of all regulations prevailing in their country of residence regarding the importation of alcohol plus any issues regarding labelling. Planned legislation in the UK will mean that the spirit can only be shipped out of the country in bottled form.
For UK taxpayers, UK Capital Gains Tax is not applicable as whisky is regarded as a "tangible", "movable" and "wasting asset". Whisky purchased in cask for personal use, as gifts for family, godchildren and friends, etc. would, therefore, be exempt from Capital Gains Tax on the realisation of the asset.
After you have ordered your casks, you will receive an order confirmation and our invoice. Please note that these casks for order will either be allocated from existing stock (if available) or as part of our next production run. Once the payment has been made and confirmation sent out your date allocation will be reserved. Please note that we use several bond storage warehouses around Scotland and the specific location used will be disclosed after the production run. Any transportation costs between distillery and storage facility are included in your cask purchase price.
When the cask has arrived, you will receive two documents with a copy each. The first document is a ‘delivery note’ which proves your ownership. The second document is a simple form that instructs us to manage the cask under your name. Both documents must be signed and returned to us. Afterwards, you will receive a ‘certificate of ownership’.
Please retain these documents for your records. If you decide to bottle or sell the cask, you will need them again.
Upon completion and submission if this agreement, you will receive a confirmation copy by email, and you will be redirected to payment. Insurance and storage for 5 years are included in the price charged.
Where is the Opportunity to Sell?
With the Scotch Whisky market thriving at record levels , there are plenty of opportunities to make a profit on your cask purchase.
- We introduce a broker service where a dedicated broker can help sell your cask(s). A service fee of 10% applies.
- As you own the cask you are free to list it on any exchange or auction house you see fit, we can introduce you to at least three.
- Bottle your own whisky.