--- title: What a whisky cask actually costs to own each year description: Storage including insurance runs about £36–£65 per cask per year, VAT-free while in bond. Duty is £33.99 per litre of pure alcohol on withdrawal. Sourced from HMRC and published operator tariffs, with the gaps named. url: https://www.whiskeycask.org/casks/storage-costs published: 2026-07-29 updated: 2026-07-29 author: WhiskeyCask Editorial source: WhiskeyCask (https://www.whiskeycask.org) --- The recurring cash cost of owning a whisky cask is **roughly £36 to £65 per year including insurance**, and it is zero-rated for VAT while the cask stays in bond. Almost everything else you will pay is deferred until you take the whisky out. That headline is anchored to the only two publicly published UK tariffs we could find. Most of the cost of cask ownership is not the storage — it is the duty, VAT and bottling bill that lands at the end, plus the bid-ask spread you pay to get out at all. ## What you pay every year - **Storage including insurance: £36–£65 per cask per year.** WhiskyInvestDirect publishes **£0.227 per litre of pure alcohol per year**, insurance included, minimum £3/month — about **£36/year** on a 250-litre hogshead filled at 63.5%. Vintage Acquisitions publishes **£65 per cask per year** after an initial included period. - **VAT on that storage: none, while in bond.** Warehousekeepers' storage charges are *"normally automatically zero-rated"* under section 18C(1) VAT Act 1994. - **Regauge fees: unknown.** A regauge measures remaining volume and strength, typically every 3–5 years. **No UK bonded warehouse we checked publishes a price for it.** We are not going to invent one. The Scotch Whisky Association confirms a charge exists without stating an amount. That is the whole recurring bill. Two published data points is a narrow evidential base, and we present it as a range rather than "the market rate". > **Watch the bundled period.** Sellers commonly include storage and insurance for 5 or 10 years, after > which the owner starts paying. The Advertising Standards Authority has twice upheld rulings that > omitting this makes an advertisement misleading — see rulings > [A22-1170732](https://www.asa.org.uk/rulings/blackford-casks-ltd-a22-1170732-blackford-casks-ltd.html) > and [G22-1179655](https://www.asa.org.uk/rulings/london-cask-co-ltd-g22-1179655-london-cask-co-ltd.html). ## What you pay when the whisky comes out **UK excise duty is £33.99 per litre of pure alcohol** for spirits stronger than 22% ABV, effective **1 February 2026**. Two features of that charge matter more than the rate: - **It is charged on the alcohol actually present at removal**, not at filling. Excise Notice 197 requires duty to be calculated on litres of pure alcohol, worked to at least four decimal places. Evaporation therefore *reduces* your duty bill. - **VAT is then charged on a duty-inclusive value.** VAT Notice 702/10 §2.5: *"The VAT value of goods removed from UK tax warehouses… You must include any excise duty in the value."* So you pay 20% on the cask's value **and** 20% on the duty. ### Bottling A published operator price list gives **about £3.15 per 70cl bottle ex-VAT** for a basic spec — £2.40 bottling with glass and seal, £0.50 for printed and applied labels, £0.25 for a sleeve — plus pallet, arrangement and shipping. Broker guidance more commonly quotes *"an average of £10 per unit"*. **Both are honest and the difference is specification, not labour**: premium glass runs £2.90–£4.15 a bottle before wax seals, boxes or custom design. If someone quotes you one figure without saying which, that is the question to ask. Two practical constraints: **single malt Scotch must be bottled in Scotland**, and the SWA warns that *"most bottlers are set up to bottle large volumes… it may take some effort to find one who is willing to bottle a single cask."* ### Getting out | Route | Published cost | | --- | --- | | Sell in bond, exchange platform | 1.75% dealing commission | | Sell in bond, broker buy-back | 2–5% (ASA rulings) | | Sell in bond, "share of profits" model | 5% of profits (ASA rulings) | | Withdraw for bottling (one platform) | 1% of duty + VAT, **minimum £1,500** | An ASA ruling in January 2026 turned on exactly this: the advertised returns were unsubstantiated **because they ignored the exit fee** ([G25-1302033](https://www.asa.org.uk/rulings/whiskey---wealth-club-ltd--g25-1302033-whiskey---wealth-club-ltd-.html)). And before any of that, there is the spread. Our own measurement of the only public cask order book found a **median bid-ask spread of 33.8%** — see [bulk cask prices](/prices). ## The angels' share is not a cash cost Whisky loses **roughly 2% of its contents to evaporation each year** (Scotch Whisky Association, 2025). It never appears on an invoice, and calling it a "cost" line misdescribes how it works. Bulk whisky trades on an **Original Fillings Basis**: you sell the litres of pure alcohol that went *in*, and the buyer discounts for the evaporation they expect to find. So it bites in two places: 1. **On sale** — as a lower price per litre of pure alcohol. 2. **On bottling** — as fewer bottles. A 250-litre cask at 2% a year holds about **204 litres after 10 years**, or roughly **291 bottles** at 70cl. It also *reduces* your duty bill, because duty is on the alcohol actually present at removal. One thing to watch: strength falls as well as volume, and **if ABV drops below 40% it can no longer be sold as Scotch Whisky.** ## What we could not verify, and won't guess Being straight about this is the point of the page: - **Regauge fees.** No operator publishes one. - **How fast ABV declines during Scottish maturation.** No citable figure. This is why we do not publish a single-number worked example of your final duty bill — the unknown swings it by around 9%. - **Angels' share by warehouse type.** Dunnage, racked and palletised storage are widely said to differ, but we found no numeric rates worth publishing. - **Insurance as a percentage of cask value.** The only verifiable structure is a flat minimum premium on a blanket sum insured, not a percentage. - **Whether casks are CGT-exempt wasting assets.** Widely asserted, including by sellers. We could not verify it against HMRC guidance. Take professional advice. ## Almost every published duty figure is out of date This is the clearest reason to check a cost page's date before trusting it. The rate has been £33.99 since 1 February 2026: | Source | Duty rate shown | Understates today by | | --- | --- | --- | | **HMRC** | **£33.99** | — | | Scotch Whisky Association guidance (2025 ed.) | £32.79 | 3.5% | | A cask trading platform's tariff page | £32.79 | 3.5% | | A broker page titled "…in 2026" | £31.64 | 6.9% | | A broker "hidden costs of bottling" page | £28.74 | **15.4%** | Every non-HMRC source we reached understates the duty bill. On a 250-litre hogshead after 10 years, the £28.74 figure understates duty by roughly **£680**. ## Sources - HMRC, [Alcohol Duty rates](https://www.gov.uk/guidance/alcohol-duty-rates) — updated 1 February 2026 - HMRC, [Excise Notice 197](https://www.gov.uk/guidance/receive-goods-into-and-remove-goods-from-an-excise-warehouse-excise-notice-197) — §6.3.1, §16.1 - HMRC, [VAT Notice 702/10: tax warehousing](https://www.gov.uk/guidance/vat-and-tax-warehousing-notice-70210) — §2.5, §5.4, §5.5 - Scotch Whisky Association, [Personal Investment in a Scotch Whisky Cask (2025)](https://www.scotch-whisky.org.uk/media/2411/cask-investment-guidance_2025.pdf) - CAP, [Enforcement Notice: Advertising of Whisky Cask Investments](https://www.asa.org.uk/resource/enforcement-notice-advertising-of-whisky-cask-investments.html) — 3 November 2023 - ASA rulings [A22-1170732](https://www.asa.org.uk/rulings/blackford-casks-ltd-a22-1170732-blackford-casks-ltd.html), [G22-1179655](https://www.asa.org.uk/rulings/london-cask-co-ltd-g22-1179655-london-cask-co-ltd.html), [G25-1302033](https://www.asa.org.uk/rulings/whiskey---wealth-club-ltd--g25-1302033-whiskey---wealth-club-ltd-.html) - [WhiskyInvestDirect tariff](https://www.whiskyinvestdirect.com/help/tariff.html) · [Whiskybroker bottling price list](https://www.whiskybroker.co.uk/_files/ugd/30a0ee_951f6a0d19824a9f97da8c1195090a17.pdf) ## Read next - [What a delivery order is, and why it decides whether you own your cask](/casks/what-a-delivery-order-is) - [What replaced WOWGR](/casks/what-replaced-wowgr) ## Frequently asked questions ### How much does it cost to store a whisky cask per year? Roughly £36 to £65 per cask per year including insurance, based on the only two publicly published UK tariffs. WhiskyInvestDirect charges £0.227 per litre of pure alcohol per year with insurance included, which is about £36 a year on a 250-litre hogshead. Vintage Acquisitions publishes £65 per cask per year. Storage is zero-rated for VAT while the cask remains in bond. Regauge fees are additional and no operator publishes them. ### How much duty do you pay on a cask of whisky? UK excise duty is £33.99 per litre of pure alcohol for spirits above 22% ABV, effective 1 February 2026. It is charged on the actual litres of pure alcohol measured when the cask leaves bond, so evaporation during maturation reduces the duty bill. VAT at 20% is then charged on top of a value that includes the duty. ### Is VAT charged on whisky cask storage? Storage charges by a warehousekeeper are normally automatically zero-rated while the goods remain in the warehousing regime, under section 18C(1) VAT Act 1994. However, previously zero-rated services can be taxed later when the goods are removed to home use or at the duty point. Whether that clawback applies depends on the facts. ### Does the angels' share cost you money? Not as a cash payment — it never appears on an invoice. Bulk whisky is traded on an Original Fillings Basis, meaning you sell the litres of pure alcohol that went in and the buyer discounts for the evaporation they expect to find. It bites in two places: as a lower price per litre on sale, and as fewer bottles if you bottle. It also reduces your duty bill, because duty is charged on the alcohol actually present at removal.