Invest in premium Scotch Single Malt with Catton Casks

ABV stands for ‘Alcohol By Volume’ which is the standard measure of how much alcohol content is contained in any given volume.

WOWGR stands for Warehouse keepers and Owners of Warehoused Goods Regulations. For a business to buy and sell whisky casks in bond you must obtain this. To gain this license Catton Casks had to provide our business plans, stock lists, storage, insurance and personal statements for all people within the company with significant control to HMRC. All persons had to pass HMRC fit and proper test and once HMRC have approved you as a viable business, you will receive your WOWGR certificate which will enable you as a company to buy and sell whisky casks in bond without having to pay duty or VAT and therefore allowing us to be legal custodians of our client’s casks.

Catton Casks WOWGR number is GBOG398130600.

Whether you are buying casks through Catton Casks, or looking elsewhere, one of the most important factors when considering an investment through that company is that they have WOWGR. Due to the whisky market being heavily regulated by HMRC, any company which falls under the WOWGR umbrella will have to follow stringent protocols to ensure everything is being done within HMRC guidelines.

Registration and approval of excise goods held in duty suspension (Excise Notice 196) – GOV.UK (www.gov.uk)

There is a lot of confusing, contradicting information on the internet regarding Delivery Orders (DO’s) and whether you need one to legally own a cask of whisky.

First and foremost, it is important to understand what a Delivery Order is. A Delivery Order is a document used by warehouses to update the current status of owner’s details for casks maturing in their bonded warehouse facility. This document is only required when a change of ownership occurs. There isn’t a standard template/format for a delivery order, and each warehouse operates differently so may require them in different ways, i.e., an email stating the changes in ownership from the seller to the buyer, or a pdf document counter signed by the seller and new owner stating the casks and specifics which are changing ownership.

To receive a delivery order, you must hold an account within a bonded warehouse facility. If you hold an account at a bonded warehouse where the cask is already located and the seller also holds an account there, then the process is very simple, and Delivery Orders get exchanged immediately. If you purchase a cask from the seller and the cask is in a bonded warehouse where you do not hold an account, you or the seller will have to arrange the appropriate transportation for those casks to be moved to a bonded warehouse facility where you do hold an account. Upon arrival of those casks and acknowledgment from the warehouse keeper that they have arrived safely, your supplier (seller of the cask) can now issue a Delivery Order to you.

It is important to understand each bonded warehouse operates differently, but ultimately, they need to do their due diligence on you and find out if you are operating as a business. If you are operating a business, then they need to understand if you are operating as a ‘Revenue Trader’.

If the business which is trying to open an account at the bond is a ‘Revenue Trader’, then this company must have obtained a WOWGR from HMRC. WOWGR stands for a Warehouse Keeper and Owners of Warehouses Goods Regulation. It is a certificate issued by HMRC and extremely hard to obtain, but once obtained, your company is put onto the register and HMRC have given you the green light to buy and sell whisky casks in bond without having to pay VAT or Duty. If you have obtained this certificate and you are placed on the register, then you are then classified as a ‘Revenue Trader’. Bonded warehouse facilities look favourably on entities who have WOWGR as all due diligence has already been done by HMRC and it is much easier to open an account at a bond if you have this certificate opposed to if you do not.

It is extremely rare that a bonded warehouse will open an account for individual clients. There are a couple of reasons for this;

• It is more simple dealing with a single business who are buying and selling casks in volume
• It is more cost effective to only open account with WOWGR holders
• It is more time effective. Is it easier and quicker to issue a storage invoice a business who has multiple casks in their account opposed to multiple individuals.
• The demand in the industry is there for them to cherry pick their clients who they wish to have accounts at their bonded warehouse.

The simple answer is no.

As explained above, as a private individual, it would be extremely hard to open an account at a bonded warehouse facility – however, not impossible. When you purchase casks through Catton Casks, you are buying stock we already own, and it is held under our corporate account at our bonded warehouse facilities in Scotland. This is because we have our WOWGR and have established relationships with many established bonded warehouse facilities. By purchasing through Catton Casks, we are providing you value and a service. You can have an array of casks at your disposal, you can take advantage of our storage and insurance benefits and utilise our exit strategies for us to sell your casks when you wish to do so.

All of Catton Casks clients are issued with a purchasing contract and an invoice, which clearly display the cask details and the ownership status for the casks being purchased. Should Catton Casks be liquidated, these details clearly show the owner’s details and are legal proof that the casks are your assets, not ours. This protects you if us as a business fails.

Yes, if you are a client that holds an account with an HMRC bonded warehouse facility in Scotland, then we will issue you a Delivery Order.

Please note, if you wish to do this, then upon Delivery Orders being accepted by the bonded warehouse and the status of ownership changing on the casks, we will not cover your storage and insurance cost . These services only apply for casks being held under our corporate accounts under our WOWGR.

Whisky casks vary in price dependent on the brand, cask type and age. Prices for new make vary from £2,000 – £5,000 a cask, where mature fine and rare casks can reach up to 6 figures.

Absolutely. However, please make sure you understand that once your cask has been bottled and they leave our bonded warehouse facility there is duty and VAT to pay.

Your designated Account Manager will guide you through the sale of your casks. All you have to do is agree on the exit strategy & the price and we will do the rest for you. Throughout this process we will endeavour to make this as efficient and stress free as possible. We have multiple options for you to choose from to sell your whisky casks, and will ensure you are aware of what option will be best suited to your circumstances.

The Angel’s share is the amount of distilled spirit lost to evaporation in a cask. This happens throughout the ageing process and is completely natural.

Our Head Whisky Analyst & Head Buyer – Tony McGeever. Catton Casks are constantly networking and building relationships within the industry which enables our current and prospective clients to take advantage of unique opportunities. Tony has been brand ambassador for the likes of Glenfiddich, Glengoyne, Tamdhu and worked at Ian Macleod.

A bonded warehouse is a secure space in which goods liable to import duty and VAT are stored. Customs duty and VAT payments on these items are deferred until the goods are sold or removed from the bonded warehouse. To put it simply, on the basis your casks are being sold in bond, you are not liable to pay VAT or duty.

How long you hold your portfolio is completely up to you. We will be transparent, and typically, the longer you hold your portfolio, the older the whisky gets and the more mature it becomes. When this happens, we have leverage as a company to demand a higher price when show casing your casks to our affiliates within the market. Please note, if you do wish to sell before your initial intended time frame, then we can facilitate this sale for you. We suggest a minimum holding period of 5 years.

No expense has been spared when it has come to cask insurance. Catton Casks have gone through the leading whisky insurance brokers within the market to insure all clients casks are protected. Our policy covers you for fire, theft and accidental damages for the full market value for your cask/casks.

Whisky is not under the remit of the Financial Conduct Authority (FCA), this is due to it being a tangible asset. This is the same as physical gold, silver & property. The Scotch Whisky Association (SWA) have provided guidance which you can get from their website on cask investment and what to look out for when considering an investment. However, as a business who is deemed by HMRC as a revenue trader, we have had to go through a lengthy and detailed procedure to obtain our WOWGR enabling us to operate within this market. In essence, we as a business are regulated by HMRC and have been trusted to operate morally and correctly. If not, our WOWGR would be taken off of us and we would not be in business. Prior to coming on board as a client, we always suggest seeking independent financial advice before parting with any capital.

This is one of the key benefits surrounding whisky cask investment when your cask is being stored or transported between bonded warehouses, it is held and transferred under duty suspension. This means while casks are being transferred and stored, there will be no duty payable. As a company we keep a very close eye on any changes made by HMRC for duty which will be applicable if you choose to take your cask out of bond.