Capital gains tax (CGT) allowances will be slashed again in April, but whisky cask investors won’t be wincing at the latest tax grab.
This alternative investment is exempt from the levy, meaning profit when selling (or “disposing of”) the asset won’t be taxed, even if they do exceed the upcoming £3,000 CGT allowance.
While possessions such as jewellery, paintings and antiques may be subject to capital gains tax, things which are classed as having a limited lifespan are not – although different rules apply if it was used for business.
HMRC rules state an investor doesn’t need to pay capital gains tax on personal possessions with a lifespan of less than 50 years – such as antique clocks or watches.
Whisky cask investments are exempt from capital gains tax
Defined as a “wasting asset”, whisky cask investments are also exempt from CGT, due to the whisky being stored in casks made from wood.
As wood is porous, the whisky can breathe. It leads to some natural evaporation inside all casks of whisky, known as the “angels’ share”.
Meanwhile, whisky bottle investors would need to pay capital gains tax if the profits exceeded the capital gains tax allowance.
Vintage Acquisitions, the trading name of Brooks & Whitaker Limited, stands at the forefront of this investment frontier, promising exclusive access to some of the rarest and most sought-after casks from Scotland’s legendary distilleries.
Their expertise not only lies in identifying these hidden gems but also in navigating the nuances of whisky investment, ensuring that each cask’s journey from distillery to market maximizes its potential return.
Whisky cask investment offers a tantalizing proposition: the chance to own a piece of history, to watch it mature with the goal of it appreciating in value over time.
Unlike traditional investments, whisky casks are tangible assets that age within the distillery’s warehouse, developing complexity and depth with each passing year.
This maturation process not only enhances the whisky’s value but also its desirability among collectors and connoisseurs worldwide.
But why invest in whisky casks now? The global appetite for fine whisky is growing, fuelled by emerging markets and a renewed appreciation for craft and quality.
Imagine the pride of ownership, the thrill of watching your cask mature, and the anticipation of its eventual bottling and sale.
This is not just an investment in whisky; it’s an investment in a legacy—a chance to be part of a story that spans generations.
Whisky casks are tangible assets that age within the distillery’s warehouse
To find out more about the whisky cask market, including the purchase process and choosing the right cask(s), request a free copy of the Vintage Acquisitions “Scotch Whisky Cask Ownership” guide.
Investing carries risk, and money can go down as well as up.
This is a paid-for advertorial feature – Vintage Acquisitions are proud advertisers on GB News.
You must be 18 or over to order with Vintage Acquisitions.
- Whisky cask investments are unregulated in the UK
- The value of investments is variable and can go down as well as up
- Fees apply and these are outlined in our terms and conditions
- The volume of spirit will decrease over time, commonly known as ‘the Angels’ share’, see website for more details.