I see various websites proclaiming that cask whisky is a “wasting chattel” and therefore not subject to CGT. For example:
there is no Capital gains tax to be paid on whisky when left in Cask
Thanks to the “wasting chattel” legislation, cask whisky is exempt from Capital Gains Tax
But I also see HMRC saying:
A wasting asset is an asset with a predictable life not exceeding fifty years at the time when it was acquired, TCGA92/S44(1). Whilst this definition would clearly apply to cheap table wine which may turn to vinegar within a relatively short period, even in unopened bottles, our view is that it would certainly not apply to port and other fortified wines which are generally recognised to have a very long storage life.
Between these extremes, there are a number of fine wines which are quite drinkable after a substantial period although of course the taste alters over that time. With these the basic consideration, in our view, is whether the wine has turned to vinegar or has merely matured. Of course in practice, most wine is drunk well below the age of 50 years and in that sense it is very difficult to consider the issue in isolation. However, where the facts justify it, we would normally contend that wine is not a wasting asset if it appears to be fine wine which not unusually is kept (or some samples of which are kept) for substantial periods sometimes well in excess of 50 years.
which this site references:
It is, therefore, unsafe to believe the hype from some whisky sellers and brokers that HMRC always view whisky as a wasting asset and is therefore always tax-free. A more discriminating approach to the question of CGT on your particular whisky investment is needed if you are to properly understand the true CGT liability on your whisky investment.
Even if it is not “wasting” and so not exempt, perhaps whisky qualifies for the £6000 chattel disposal limit:
There is no chargeable gain on the disposal of a single chattel (tangible moveable property) if the gross consideration does not exceed £6,000.
although it is then not clear to me what “single” means. (For example, whiskyinvestdirect provides a marketplace operating on the unit of “LPA” (litre of pure alcohol) rather than on entire casks.)
Can someone point me to any rulings (definitive or illustrative)?
Note: People in the comments seem to think I am asking for opinions on the merits (or otherwise) of this type of investment. I am not. Suffice to say that I have this type of investment and I have made gains. I solely wish to discover whether or not I need to report these gains to HMRC, given that I have exceeded my tax-free allowance.
