The City of London Police has launched an investigation into a whisky investment company as part of the force’s commitment to protect the UK from the threat of fraud and economic crime.

The investigation is linked to Cask Whisky Ltd, a company which purports to trade in whisky casks, selling directly to clients.

Whisky is a growing investment market, with legitimate brokers and resellers operating within the UK. Investors are lured by the potential profits emanating from mature (aged) whisky.

In some cases, people are misled or promised guaranteed or unrealistic returns on their initial investment. This is the same as many forms of investment fraud, however whisky investment fraud is an area which has grown in recent years.

It is essential to understand the market and potential costs, before investing.  Potential costs include:

• Warehousing costs: many choose to mature whisky beyond ten years. As a general rule, the older the whisky, the higher the value (although many variables affect this). Some investment companies do not cover warehousing or storage costs for the full maturation period.
• Alcohol duty: when the whisky is removed from bond, and released for consumption in the UK, “alcohol duty” is due to be paid. Alcohol duty on whisky is currently £31.64 per litre of alcohol (as of July 2024).
• Potential Capital Gains tax: whisky is not Capital Gains Tax exempt.
• Bottling costs and subsequent VAT upon re-sale.

Detective Inspector Stephen Weller, from the Serious Organised Crime Team at City of London Police, said: 

“Investment fraud is an incredibly callous form of criminality, that can leave victims in financial ruin.

“Regarding Cask Whisky Ltd, we are investigating an allegation of fraud and seeking to establish if any criminality has taken place.

“If you have made any investments with Cask Whisky Ltd, or have been contacted by Cask Whisky Ltd, we would ask you to submit information to help us build a bigger picture and help our ongoing enquiries.

“You can submit information by completing a questionnaire on the Major Incident Public Portal (MIPP).”