October 29, 2021

What do the new Alcohol Duty Reforms Mean for Scotch Cask Investors?

In 2023 the UK's alcohol duties are undergoing vast changes, but what does that mean for scotch whisky cask investment?

Written by


UK Chancellor Rishi Sunak has announced a set of changes in the budget, to alcohol duties, coming into play 2023. Essentially simplifying the UK’s current 15 tax bands into just 6, based on the principle of “the higher the alcohol content, the higher the tax”. 

This has worried a lot of investors, since it would raise the cost of a bottle of whisky by 50p, which for cask investors would reduce the amount of people buying scotch for consumption, leading to lower returns for investors. However, at the last minute, the Chancellor has come to the aid of the UK’s largest food and drinks export market, announcing that the planned duty hike has been scrapped. 

This is welcome news for distillers, investors and consumers alike since it helps to assuage fears that the heavy tax burden placed upon scotch whisky was increasing. It shows the commitment the government has to the scotch industry, especially on the back of lifting the US tariffs and the potential of the India trade deal. At the end of the day, the more people drinking whisky, the greater your return on your investment as your cask becomes rarer and rarer. 

All in all, the future looks extremely bright for scotch whisky cask investors with the UK government’s commitment to the scotch industry, the global markets opening back up after COVID and numerous countries lowering their tariffs on British goods.

If you are interested in beginning your whisky investment journey, or if you wish to diversify your investing portfolio, speak to our experts now using the form below.

What our clients say

  1. You must be 18 years or older to purchase alcohol-based products from Hackstons.
  2. Hackstons is not authorised or regulated by the Financial Conduct Authority (FCA), and we do not offer any specific financial advice on the use of assets as investments.
  3. All information about asset purchases on our website and social media sites is for information purposes only. No information provided should be taken as financial advice on asset investment. If you wish to obtain financial advice on asset investments, you should seek the assistance of a qualified financial advisor before carrying out your purchase through Hackstons.
  4. Hackstons employees are not tax advisors and cannot advise on the tax benefits of asset investment. If you require tax advice on asset investment, you should seek the advice of a qualified tax advisor.
  5. Information provided by Hackstons is of a purely general nature, and it does not always relate to trades, sales or returns carried out or achieved by Hackstons.
  6. As with all investments, an asset's value can go up and down.
  7. If you are purchasing a whisky cask, it is advisable to perform regular health checks on your cask every three years. Cask services are chargeable to the client, including regauging, samples and photographs.
  8. All casks are stored within HMRC-bonded warehouses and are subject to strict rules and regulations set by HMRC. Hackstons may occasionally require certain information from you to comply with HMRC requirements.