When you purchase bottled Whisky it is further along the process than casks and ready to be sold on at any time. However, the older the whisky gets the more valuable it can become, so buying at the cask stage allows for the maximal capital appreciation. Also, unlike Whisky in casks, bottled Whisky does not mature with age. That means once it is bottled, it will remain exactly the same indefinitely. Any appreciation in value that a bottled Whisky sees is based on changes in demand for that particular release.
You should be prepared to hold your Whisky for an absolute minimum of 5 years.
Market statistics from the past decade indicate returns of around 8 - 12% per annum.
Casks of Whisky have to be stored in government bonded facilities which is why we store all of our client stock in a HMRC bonded warehouse where the goods are free from duty and VAT.
Whisky casks are classed as a ‘wasting asset’ and are therefore not subject to capital gains tax. A wasting asset is an asset with a predictable life of 50 years or less.
When your cask is being stored or transported between bonded warehouses, it’s held and transported under duty suspension which means you don’t have to pay duty on your cask until it is removed from the bond.