No. In the UK, HMRC (HM Revenue and Customs) regulates the buying and selling of cask whisky.

Hackstons ensures that we are compliant to as many of the FCA’s regulations as possible, conducting various anti-money laundering checks (AMLs) and ensuring our customers will not be put at financial risk through Know Your Customer checks (KYCs). Our compliance team will carry out these reviews before you are able to purchase any scotch cask for investment.

Every time a cask is moved to a different warehouse or the owner of record is changed, the HMRC accredited cask storage warehouse uses a document called a Delivery Order, often simply referred to as a ‘D.O.’ or ‘DO’, as a receipt that documents the transaction. Delivery orders vary in appearance from warehouse to warehouse, but must include the warehouse letterhead, details of the transaction and a signature from the warehouse keeper.

Hackstons is happy to provide a delivery order (DO) for all clients with an account with a warehouse. If the stock is not currently lying at the warehouse in which you hold an account, we can arrange for your stock to be moved to such a warehouse as long as Hackstons also holds an account with that warehouse.

If you are unable to open an account with a warehouse and you would like to own a cask, we offer a second option which is ultimate beneficial ownership. Please see below for details.

As with all investments, values can go up or down. It is also worth noting that Scotch whisky is an unregulated industry, despite a number of strict controls on supply and demand with careful protections for investors and consumers alike.

Please note, there are risks to consider when investing in cask whisky, you can find more information around other risks relating to whisky cask investment, as well as our business terms – https://hackstons.com/risks-to-consider-our-disclaimer/.

Yes, if you enter the market on your own.

No, if you work alongside a cask investment company.

It is worth noting that there is an exception for the WOWGR certification for individual buyers, but there is uncertainty surrounding the limitations as to the number of casks that can be owned in order to comply (HMRC has not provided clear guidance on the exception). But, more importantly, nearly every warehouse in Scotland will no longer open accounts for individuals. In addition, due to the expansion of the industry, most warehouses are only looking to establish new accounts for buyers who own a sizeable number of casks.

The majority of warehouses don’t accommodate individuals who might only own a few casks, instead they often want to open corporate accounts with hundreds or thousands of casks.

However, there is an alternative for private investors looking to gain entry to the whisky cask investment market, such as working with a luxury assets brokerage such as Hackstons.

But what if the warehouse goes into liquidation?‍

The longer you hold your cask, the more likely you are to receive better returns on your initial investment, with many of our clients looking at 15 or 20 year hold periods. However it is a 10-year minimum hold period when purchasing casks with Hackstons. The length of time you should hold your cask beyond this initial 10 years will depend on the brand of whisky and the age of the cask, alongside your own financial goals.

In the UK, you do not have to pay Capital Gains Tax on a cask of scotch, unlike bottled scotch whisky. However it is worth noting that when exiting, if you decide to bottle your cask, the process will be subject to duty and VAT. Due to the casks being held under bond you also do not need to worry about applying for a wholesale license, Hackstons will handle these details for you.

Gains achieved with Scotch whisky casks are subject to local tax laws.

95% of our business is Scotch, however, sometimes we do procure casks from other countries.

No need to worry.

Hackstons has a vast network of whisky distilleries, luxury auction houses and private scotch cask investors who are all interested in procuring Scottish whisky. We will present your options and leave the final decision to you.

Yes.

If you are interested in exploring an exit strategy with us, we would be more than happy to help. Feel free to contact us.