Investing in whisky casks can be a rewarding long-term opportunity. Below are some of the most common questions investors ask before entering the market.
Fire, theft, and unintentional damage are all covered in full for your cask. Whisky Solutions will cover any excess through the insurer(AVIVA), so in the unusual case of a claim, you’ll get the entire market value of the cask at the time of the claim.
Cask whisky purchases do not come with any assurances. Since there are so many elements that influence markets, any promise would be misleading. Historically, buying and storing whisky barrels for the medium to long term has been profitable, but previous performance is no guarantee of future results. Whisky Solutions works on the simple premise that if you buy whisky barrels and keep them for a long time, the whisky you buy will be older, in lower supply, and hence more desirable than it was when you initially bought it.
Fire, theft, and unintentional damage are all covered in full for your cask. Whisky Solutions will cover any excess through the insurer(AVIVA), so in the unusual case of a claim, you’ll get the entire market value of the cask at the time of the claim.
Scams are unfortunately common in any industry where success is common. Whisky Solutions has been in business for a long time and advises any clients interested in purchasing cask whisky to do as much research as possible. In general, potential clients should obtain independent guidance and conduct thorough and accurate background checks when deciding who to work with. The FCA does not control the sale of cask whisky, hence purchases are not covered by the FSCS(Financial Services Compensation Scheme). HMRC, on the other hand, regulates the purchase of cask whisky. In simple terms, clients should avoid organisations that advertise astronomically high returns or make any claims of “guaranteed profits,” as well as firms that are not listed on the WOWGR trading platform.
In either case, the main conclusion is that you own specific individually numbered whisky casks kept under bond at HMRC-regulated warehouses and can prove it. The casks are yours and not part of Whisky Solutions’ inventory. They are not for sale. Your barrel will not be auctioned to satisfy receivers or creditors if Whisky Solutions goes bankrupt. The cask is yours to keep.
Fire, theft, and unintentional damage are all covered in full for your cask. Whisky Solutions will cover any excess through the insurer(AVIVA), so in the unusual case of a claim, you’ll get the entire market value of the cask at the time of the claim.
Whisky Solutions are classified as a “wasting asset,” which means they are exempt from capital gains tax. Wooden whisky casks are porous by nature, thus only a small quantity of whisky evaporates each year and is absorbed by the wood, usually less than 2% (the angel’s share). A wasted asset is one that has a foreseeable life of 50 years or fewer, and due to evaporation, your cask’s life expectancy is unlikely to be greater than 50 years.
