Tax on Scottish Whisky

Whisky cask ownership can offer some unique tax benefits to investors. At Catton Casks, we pride ourselves on providing as much transparency as possible, so here he is what you will want to know if you are considering this market.

HMRC considers whisky casks to be a ‘wasting asset’; What does this mean?

A wasting asset is defined as a product which has a shelf life of 50 years or less which means you will not be liable to pay any Capital Gains Tax on the profits you make when you sell your cask. Do not be frightened by the term wasting asset, in reality whisky casks actually increase in value over time as the liquid matures.

These fruitful tax benefits apply if a sale of your cask is being sold in bond either to an entity or another investor. If we were to sell your cask to a bottling company and take the cask out of bond, then duty and VAT would be applicable. 

We advise, before you consider coming on board as a client, you take some advice from a tax expert regarding your specific tax situation.