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How much in taxes and fees do I need to pay?
How much in taxes and fees do I need to pay?

Learn about all the costs associated with spirit & wine investments

Updated this week

At a glance

On purchase

You will be able to see all the on purchase fees during checkout.

  • Storage + Storage value-added tax (VAT)

  • Insurance (included with storage)

  • Dependent on items - Duty status - paid

    • VAT

    • Duty

On exit

  • 5% commission when selling

  • Dependent on items - Duty status: in bond, and when removing from warehouse for consumption

    • VAT

    • Duty

Not paying

  • Capital gains tax

Storage

You need to store spirits in a bonded warehouse until you sell or bottle them. During the purchase process you'll be able to store your assets in one of our warehouses—just choose how long you wish to store it.

Insurance

Insurance of the cask is included in storage costs.

Value-added tax - VAT

You pay UK VAT of 20% for a few things:

  • Storage

  • Duty paid items

  • In bond items when taking them out of a bonded warehouse, usually for bottling or moving elsewhere.

If you sell your in-bond assets while they are still in a bonded warehouse, you do not need to pay VAT.

Duty

Bonded warehouses are exempt from duty, so you only need to pay duty if you are taking the assets out of a bonded warehouse or if duty has already been paid for them.

You can see the Duty status on every item under Stock info.

There are two duty statuses:

  • Paid - Duty has been paid, so the price you see already includes VAT and duty

  • In bond - The item is in bond, so the price you see excludes VAT and duty. You will need to pay them when your asset leaves the warehouse.

Exit fee (commission)

We take a flat 5% commission fee only when you sell an asset. This structure helps us give you the best possible service as your success is directly tied to ours.

Capital Gains Tax

Assets on Whisky Partners are not subject to Capital Gains Tax (CGT). That said, we strongly advise you to seek independent advice that you consider to be reliable and trustworthy. If you don't know such a person, this government website might help.

Example

This is a speculative example to give you a rough idea of the fees included in the process. You can take a look at recent exits within your app dashboard.

  • Original cask price: £3000

  • Storage for 5 years: £290 + £58 VAT

After 5 years, you decide to sell the cask.

  • Sale price: £8000

  • Commission: £400

Total cost is £3348 = Original cask price + storage for 5 years + storage VAT + commission. Profit is £4652

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