How Whisky Investment Works
Learn more about the process of how whisky investment works before getting started
What are the costs of investing in whisky?
Performance Related Fee
Most investment houses that manage assets belonging to clients will charge a fixed yearly fee, regardless of the outcome of the investment. At Highland Cask Group we take a different approach – we manage your asset on an open-ended basis and charge no yearly fee.
Instead, Highland Cask Group Ltd are contractually obliged to take 10% of any profits made on the cask at the end of the investment period, whenever that may be.
The greater the profit we make for the client, the bigger our commission at the back end and so we are incentivised to generate as much profit as possible for our clients.
Illustrative Example of Costs
Indicative figures to show how the above costs are calculated:
Mr Smith invests £10,000 in a single cask of Scotch single malt in 2020
He sells the cask through HCG Ltd for £15,000 in 2023
HCG Ltd’s commission would be 10% of the £5,000 profit generated, equalling £500
RETURN ON INVESTMENT
Mr Smith would therefore receive £15,000, minus £500 (HCG’s Ltd commission), equalling £14,500
The £4,500 profit is exempt from CGT owing to its ‘wasting asset’ status*
*Our advice is always to consult with your own independent tax advisor.