Terms & Conditions

Whisky casks are filled with distilled spirit diluted with water in the manner appropriate to whisky maturation. The quantity and purity of spirit is measured as it is put into a cask, allowing for the calculation and recording of Original Litres of Alcohol (LPA) that the cask contains at the time it is filled. This is the volume of fluid multiplied by the purity.

Thereafter there is some loss of liquid quantity primarily due to evaporation from the cask (also referred to as “the Angel’s Share”) which is necessary to the process of maturation. Consequently, the overall volume of liquid in the barrel reduces with both water and spirit being lost to evaporation at the approximate rate of 2% per year. This may vary depending on temperature conditions, which are not the responsibility of Cask Capital Ltd.

Within the industry, this is measured in two ways: Original Litres of Alcohol (OLA) – the original litres of alcohol first put into the cask; or, Regauged Litres of Alcohol (RLA) – the remaining litres of alcohol in the cask after re-measuring at a known date after the original filling.

The industry generally trades using RLA and OLA. Practitioners know to make the numerical adjustment to actual litres and expect that when a cask is emptied evaporation will mean that there is less volume of both actual liquid, and of LPA, than is recorded on the OLA. The price paid on OLA automatically makes allowance for the loss of volume. For example, the value per actual litre (on an RLA basis) is more than the value of an OLA litre.

 

You accept that you will generally own fewer physical litres of alcohol than is described on your account, and that the shortfall increases over time.  You are entitled to expect those Cask Capital Ltd sources cask of sufficient quality for the purpose of maturation.  However, you accept that in an industry such as Whisky there will be variations from cask to cask and distiller to distiller. You also accept and understand the market in which different values are ascribed to different whiskies at different times.

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Storage

Cask Capital Ltd Ltd will enter into separate agreements with different suppliers and warehouses. Cask Capital Ltd will buy whisky from a supplier. In many cases the supplier will also operate as a bonded warehouse operator itself. A bonded warehouse operator is a professional organisation of good standing which is in the business of managing the receipt, storage, maturation and re-delivery of whisky according to the practices of the whisky market.

Cask Capital Ltd.’s relationship will be with a supplier, and the supplier will engage a bonded warehouse operator if it is not using its own facilities. Whether a supplier uses its own facilities for storage or those of a third part bonded warehouse operator, you are entitled to rely on the storage of your whisky being performed with appropriate care by an approved bonded warehouse operator.

Whisky is from time to time moved by the bonded warehouse operator responsible for storage. This is done for commercial and risk reduction reasons, frequently to prevent all of a particular Whisky from being subject to single-site risks. You permit Cask Capital Ltd to allow those who are organising the storage of your whisky to arrange for its re-distribution at any number of bonded warehouses, provided that supplier accepts the ultimate duty of care for the provision of appropriate storage, and provided that any such re-distribution is not executed knowingly to the disadvantage of customers of Cask Capital Ltd.

 

Storage Agreements with Bonded Warehouse Operators

You authorize Cask Capital Ltd to act as your agent for arranging safe custody of your whisky with or through the relevant supplier. Cask Capital Ltd confirms to you that in each supplier’s contract it is acknowledged by the supplier that the whisky stored under the agreement is allocated on a cask-by-cask basis, is the property of Cask Capital Ltd Clients, and is always segregated from supplier’s own stock.

Cask Capital Ltd confirms to you that in each supplier contract the supplier accepts responsibility for the whisky from the time of your purchase until the time of your sale or withdrawal according to instructions received through Cask Capital Ltd.

Cask Capital Ltd undertakes that your whisky will not be subject to any kind of lending, collateral, hypothecation, or derivative transaction of any type and will remain your property in the safekeeping of the supplier, or their third-party bonded warehouse operator, until sold or withdrawn according to your instructions received via Cask Capital Ltd.

 

Insurance

For private clients, Cask Capital Ltd provides one year’s free storage and insurance. For Trade Clients who hold a WOWGR or have a duty representative, your own arrangements will need to be made. Insurance costs will range from £30 per year, dependent on value of whisky; this may vary depending on bonded warehouse operators. Storage starts at £0.36p per week per cask, exclusive of VAT, and will be agreed with each client at the time of purchase.

Cask Capital Ltd enters into insurance contracts to which you are not a party with the intention of itself receiving payment of claims, from the insurer, in the event of there being certain categories of physical loss, physical damage or destruction of your whisky while stored in the care of a supplier or its third-party bonded warehouse operator.

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Cask Capital Ltd accepts liability to you to the extent to which those risks are covered by its own insurance.

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The liability which Cask Capital Ltd accepts is limited to those risks which are covered under its documented insurance. You accept an obligation to examine the evidence of insurance and satisfy yourself that such risks as are excluded specifically, or otherwise not covered, are risks which you accept. You agree you will not hold Cask Capital Ltd liable for losses arising from those risks.

Cask Capital Ltd limits the extent of its liability in each and every case to the reasonably assessed loss you experience.

 

Ownership Records

Cask Capital Ltd maintains the master copy of ownership records. Cask Capital Ltd agrees with you that in so far as they relate to you these records shall only be modified upon the execution of your valid instructions, made according to these Terms and Conditions.  All casks are numbered and held in your name under the Cask Capital Ltd WOWGR, unless prior agreement has been made between Cask Capital Ltd and you, the Client, for the storage of casks with a third-party warehouse under a private account.

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Samples

Cask Capital Ltd may request samples on your behalf from our suppliers and bonded warehouse operators. The standard size sample is 50ml, and costs may vary between warehouse operators. The Client accepts to cover all costs of procuring samples, including duty and delivery. Due to the nature of individual warehousing, we cannot guarantee a set time frame.

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Responsibility disclaimer

The following lists indicate such risks as Cask Capital Ltd considers material. It does not constitute a statement of all possible risks.

The Following Risks are not the responsibility of Cask Capital Ltd:

• Whisky price movements: There is the risk of potential loss arising from a falling whisky price during the time in which you own whisky. This risk is not a Cask Capital Ltd responsibility.

• Politics: The Government of the UK or Scotland might seek to constrain, disadvantage or tax the ownership of whisky to the detriment of its owners. The actuality or fear of government action might affect the value of your whisky. This risk is not a Cask Capital Ltd responsibility.

• Liquidity risk: The risks associated with a lack of immediate liquidity are not a Cask Capital Ltd responsibility.

• Insurance exclusions: As your property, your whisky is subject to insurance exclusions imposed by insurance underwriters in line with established insurance practice regarding the physical protection of your whisky. These excluded risks include events such as nuclear war. These are not a Cask Capital Ltd responsibility and are risks you undertake with respect to your whisky.

• Force Majeure: The risks described under Force Majeure are not Cask Capital Ltd responsibilities.

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Your Rights

• Your rights under this contract of sale may not be transferred or assigned to a third party without our consent in writing. Ownership of the cask is not transferable to a third party without prior written consent from Cask Capital Ltd.

• This contract of sale is governed by UK Law and Client and Cask Capital Ltd both agree to and accept the exclusive jurisdiction of the Courts in respect of any matters arising from it.

• Duty is the charge made by HM Revenue & Customs based on the percentage of pure alcohol. The current rate in the UK is £28.74 per litre of pure alcohol (valid at 01/02/2019).

• UK VAT is currently 20%. This is charged on the purchase price of the whisky, bottling and duty costs payable by the purchaser.

• Both Duty and VAT are due before the Whisky has been bottled and the finished goods are removed from the bonded warehouse.

• Both UK duty and VAT are subject to change by the UK Government.

• If you sell the cask in its entirety back to Cask Capital Ltd, this transfer will take place under bond, and there will be no duty or VAT to pay.

• Various rates of Duty apply throughout the EU and the rest of the world and it is the purchaser’s responsibility to ensure all relevant taxes are paid in the country of destination. By completion of this purchase you nominally appoint Cask Capital Ltd as your Duty Representative should that be required, until notified otherwise with details and copy of the relevant documents of an alternative.

• If the whisky is exported under bond, Duty and VAT can be suspended (but not avoided) subject to the exporter being registered for both Duty and VAT and being registered as legitimate exporter.

• Duty and VAT would be payable in the country of final destination at the rates prevailing in that country at that time. It is up to the owner to find a suitable importer in the destination country and to arrange the export. Please note it is the responsibility of the purchaser in their country of residence regarding the importation of alcohol plus any issues regarding labelling.

 

Terms and Conditions of Sale

• Any offer or acceptance of a quotation made by the Buyer will be deemed an offer to purchase the goods governed by these Terms and Conditions.

• No offer or acceptance of a quotation will be deemed a binding agreement of sale until confirmation with a written invoice issued by Cask Capital Ltd. Upon confirmation, these Terms and Conditions (as they may be amended by Cask Capital Ltd (from time to time) form a binding agreement between the Buyer and Cask Capital Ltd.

• Any goods or services not confirmed by written invoice are deemed additional work and must be agreed in writing signed by both parties. These terms and Conditions are applicable to any additional work or sales to the Buyer by Cask Capital Ltd.

• Cask Capital Ltd reserves the first right of refusal for the sale of all casks, where stored with Cask Capital Ltd.

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Purchase Price and Payment Methods

• The purchase price shall be the price offered by Cask Capital Ltd and confirmed by written invoice.

• The purchase price does not include the cost of packaging, delivery, insurance, VAT, sale, use, excise or similar duty which may be applied. Any fees, duty or taxes applied will be billed to and paid by the Buyer as set forth on the written invoice issued by Cask Capital Ltd.

• All payment shall be made in British Pound Sterling and the agreed price is due in full at the time the offered price is accepted and confirmed by invoice, unless agreed otherwise in writing.

• The Buyer will have 7 days from the date of invoice to make payment in full, unless agreed otherwise.

• Legal Title of the product will not pass to Buyer until the accepted and confirmed price is paid in full and delivery is made.

• Late Fees: any payment not paid in full as per the Terms and Conditions will be subject to interest assessed on funds due at 3 percent per annum over the Bank of England base rate from time to time.

• All payments are due from the Buyer in full without any deduction by way of a set-off, counter-claim, discount, abatement or otherwise.

• We offer the facility to reserve a cask through a non-refundable down payment or deposit by pre-arrangement only. This payment is non-refundable, and full ownership will not transfer until full and final payment is made within an agreed time-frame.

• Cask Capital Ltd does not have the facility to offer credit. We’re not a credit broker or finance provider.

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 Goods

• The goods to be delivered shall be specifically described in the written invoice provided by Cask Capital Ltd.

• The Buyer hereby acknowledges and accepts that the quality and quantity of the goods are as described in the purchase order.

• In the event the specific good is not available as of the date the order is confirmed by written invoice, Cask Capital Ltd agrees to source goods of equal or greater quality.

• In the event that Cask Capital Ltd cannot source goods acceptable to the Buyer because the ordered goods are not available, the Buyer will have 7 days to provide written notice to cancel the order. Cask Capital Ltd will, upon receipt of such notice, refund moneys paid in full.

• The Buyer agrees and acknowledges that all specifications and advertising issued by Cask Capital Ltd and any descriptions or illustrations contained in Cask Capital Ltd and Cask Capital Ltd marketing materials are provided for the sole purpose of giving an approximate idea of the goods described in them. Cask Capital Ltd is not bound by such descriptions which do not form a part of these Terms and Conditions, nor are they a part of the sales agreement and this is not a sale by sample.

• Cask Capital Ltd reserves first right of refusal for all casks held by our clients where stored with Cask Capital Ltd. Cask Capital Ltd always endeavors to provide our clients with the best price and service.

• For UK tax payers, UK Capital Gains Tax is not currently applicable as cask whisky is regarded as a “tangible”, “movable” and “wasting asset”. Whisky purchased in cask for personal use, as gifts for family, godchildren and friends, etc would therefore be exempt. Please seek advice with your personal tax advisor.

• Casks are sold on a first come, first serve basis.

• We do not offer shared ownership options; all casks must be held under one name.

• Unless otherwise agreed by the parties, delivery of the goods shall be to the pre-agreed bonded warehouse facility. Risk of loss or damage to the goods passes to the Buyer immediately upon transfer of ownership.

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Returns

• Once a sale is deemed final, no returns will be accepted or refunds made and the buyer hereby accepts and waives any claims he/she may have under English law or otherwise.

• Our recommended hold period is a minimum of 3 Years or 36 months but may be set as 5 years (60 months) or in some cases 10 years (120 months) or longer – depending on the product and age at the time of purchase

Warranties

Cask Capital Ltd makes no warranties, expressed or implied, except as specifically stated herein. Such warranties are in lieu of all other warranties, written or oral, statutory, express or implied, including without limitation, any warranty of merchantability or fitness for a particular purpose. Cask Capital Ltd shall in no event be liable for any incidental, special, or consequential damages of any nature, even if Cask Capital Ltd has been advised of the possibility of such damages. In no event shall Cask Capital Ltd have total liability to the Buyer for all damages, losses and causes of action (whether in contract, tort or otherwise) exceed the amount paid by Buyer, if any, for the value of the goods and services provided hereunder.

 

Termination

Termination by Cask Capital Ltd may terminate this agreement if the Buyer fails to make payment when due or substantially breaches any other obligation of these Terms and Conditions or the Sales Agreement. Cask Capital Ltd may notify the Buyer in writing of such termination and recover from the Buyer payment for goods sold or work completed. The Buyer is liable for any and all costs incurred by Cask Capital Ltd in connection with collection of such unpaid funds.

 

Force Majeure.

Force Majeure Provision of goods supplied to the Buyer covered by the Sales Agreement is contingent upon the non-occurrence of strikes, accidents, delays of carriers, delays of delivery, delay of personnel or other causes unavoidable or beyond the control of Cask Capital Ltd. If performance of the Sales Agreement or any obligation under the Sales Agreement is prevented, restricted, or interfered with by causes beyond either party’s reasonable control (“force majeure”), and if the party unable to carry out its obligations gives the other party prompt written notice of such event, then the obligations of the party Invoking this provision shall be suspended to the extent necessary by such event. The term Force Majeure shall include, without limitation, acts of God, fire, explosion, vandalism, storm or other similar occurrence, orders or acts of military or civil authority, or by national emergencies, insurrections, riots, wars, supplier failures, shortages, breach, or delays. The excused party shall use reasonable efforts under the circumstances to avoid or remove such causes of non-performance and shall proceed to perform with reasonable dispatch whenever such causes are removed or ceased. An act or omission shall be deemed within the reasonable control of a party if committed, omitted, or caused by such party, or its employees, officers, agents, or Special losses, any loss of use, profit, business, revenue or contract or any liability of the Buyer to any third party.

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General

• Each right or remedy of Cask Capital Ltd under the Contract is without prejudice to any other right or remedy of Cask Capital Ltd whether under the contract or not.

• No failure or delay Cask Capital Ltd to exercise any right, power or remedy will operate as a waiver of it, nor will any partial exercise preclude any further exercise of the same, or of any other right, power or remedy.

• The parties do not intend that any term of these Terms shall be enforceable by virtue of the Contracts (Rights of Third Parties) Act 1999 by any person that is not a party of it.