Whisky Cask Ownership Insights
An Explanation of Whisky Cask Ownership, Market Performance and Future Predictions
Why is the concept of whisky cask ownership so appealing? With stock market fluctuations and poor interest rates from the banks, whisky ownership offers something very different and more stable.
During these turbulent times it has become clear to those involved in whisky, especially in the last ten years, that cask ownership offers stability and certainty. Knight Frank reported that in 2018 the whisky market increased by 40% and an impressive 582% in the last ten years.
Duty, Capital Gains & Inheritance Tax
All Whisky casks purchased through Viticult are stored in a Government bonded warehouse. All goods stored in a government bonded warehouse are completely exempt from UK Duty Taxes unless removed. Put simply, a bonded warehouse works in a similar way as a duty free zone in an airport. Casks purchased through Viticult are done so ‘in bond’ and sold ‘in bond, this bypassing any such taxation fees (20%).
Storage costs range from £50 - £100.This covers insurance and security of your cask. In the unlikely your cask either damaged you will be fully insured at market value. Vitcult covers the first year storage.
What is a Blended Whisky?
A blended Scotch whisky is produced by blending two or more single malt whiskies together. Typically this allows for a lower priced product, although many premium blended Scotch whiskies exists. The whisky used in a blends can be a mixture of whisky from different distilleries. For example, the Benrinnes Distillery produces whisky that is used in the Johnny Walker blends as well as J&B. The Glentauchers Distillery produces whisky that is used in the internationally renowned Black & White whisky.
How is a whisky cask made?
When whisky spends years resting in casks it’s vital that the vessel is in optimum condition to do its job. Yet the construction of a quality cask is far more complex than simply bounding a few staves together, writes Becky Paskin.
It’s a credit to the cask’s genius engineering that its shape and construction hasn’t changed in hundreds of years. Used by breweries, wineries and distilleries the world over, the humble cask is responsible for slowly maturing some of our favourite beverages, adding sweetness and spice while mellowing the liquid at the same time.