Investing in cask whisky
Cask whisky is one of the safest investments around. It is a highly regulated commodity in the UK governed by Her Majesty’s Revenue and Customs (HMRC). The new pour cask must mature in a UK bonded warehouse in Scotland for at least three years before it has the right to be deemed Scotch Whisky. A bonded warehouse is a tax-free storage location. Duty and tax payable on goods held there do not generate tax until the goods are purchased and shipped out.
By law, from the moment a cask is filled, it’s given a unique identification code. This code stays with it throughout its lifetime. The code is recorded at the distillery by transportation companies and recorded at the bonded warehouses.
Any mismanagement of these records can result in the offending company having its operating licence revoked, effectively shutting it down – it’s that serious.
Because of the high potential tax take from alcohol, bonded warehouses are licensed by HMRC and closely monitored by the government. They’re among the most tightly controlled locations in the country.