What recent changes to WOWGR mean for Whisky Cask Investors in 2025

The end of WOWGR (Why they're dropping the OWG)

There is no doubt the whisky cask investment landscape is set to be altered in 2025, with the repeal of WOWGR. Essentially these changes, which came into force on 3rd March, have shifted the onus from anyone whose business involved cask ownership (Owners of Warehoused Goods),back to Warehousekeepers only (from WOWGR to WGR).

Nevertheless, the same principles of taxation, including exemption from Capital Gains Tax and other rules governing bonded warehouse storage, remain in place. So, what has changed? For clients of professional, established whisky cask companies, especially those like London Cask Traders who have previously earned WOWGR certification, the answer is very little.

What was WOWGR?

Until March 2025, WOWGR governed the storage and trading of whisky casks in bonded warehouses, regarding both businesses and private individuals. Effectively, WOWGR ensured that only licensed businesses could trade whisky, with private in individuals limited to owning a maximum of five casks under their name. These regulations, designed to manage excise duties and ensure valid documentation, also created barriers and some confusion for individual investors seeking to expand their portfolios.

Since achieving a WOWGR status often took several months, and required thorough background checks, it effectively acted as a barrier to less scrupulous companies setting up and entering the industry. The new regulations are intended to simplify the process of owning and trading whisky casks, but alongside potential benefits individual investors will need to remain even more cautious who they purchase their casks from.

For London Cask Traders clients, their WOWGR registration has always provided an added sense of security for clients. With every cask purchased, owners automatically received a Delivery Order (D.O.) that confirmed their ownership and storage location. Despite the repeal of WOWGR, London Cask Traders will continue to provide Delivery Orders for all of their clients, ensuring peace of mind and the benefits of being able to sell with full paperwork and provenance details in place.

What Does This Mean for Existing Cask Owners?

For current and future London Cask Traders clients, these changes are almost all positive. The removal of private individual ownership limits allows for greater flexibility in buying and selling whisky casks, effectively expanding the market. Meanwhile, the Delivery Order (D.0.), will continue to act as an essential legal document confirming ownership and storage location, maintaining transparency and traceability.

While the new regulations are intended to simplify the ownership process, it's important to note not all warehouses may be willing or able to accept private individual clients, especially given the potential rise in demand. Some warehouses, especially those affiliated or owned by larger distilleries themselves, are simply not set up to deal with the administration involved in providing paperwork for individual clients owning perhaps one or two casks, as opposed to wholesale clients with a much larger number of casks.

For those who already own whisky casks through London Cask Traders, the recent changes in regulations simply mean the Delivery Order, (D.O.), remains the industry standard for transferring ownership in the industry.

Impact on the Whisky Cask Investment Market

It's widely predicted that the repeal of WOWGR will increase private investment and liquidity in the whisky market, as investors can now expand their portfolios without regulatory restrictions. However, the lack of industry-wide standardisation regarding cask ownership continues to raise concerns about transparency and trust.

London Cask Traders clients already benefit from a well-established system of Delivery Orders that ensure secure and verified direct ownership, but as new companies enter the market, the need for careful selection of investment partners, especially for those new to the market, becomes even more apparent.

While the WOWGR changes remove certain regulatory barriers, they also lower the bar for entry of new, potentially less scrupulous cask investment companies. Investors need to remain vigilant and maintain a high level of due diligence, especially regarding companies without any previous WOWGR registration, before the new regulations were introduced.

What Investors Need to Know for the Future

Embracing technology is perhaps one of the best ways forward and as Oliver Court, managing director at London Cask Traders, confirms this is likely to be the next step in the evolution of cask investment.

'We've always aligned ourselves with best practices throughout the industry and recent advances in technology, which could eventually create digital passports for every cask, are something we are keen to encourage and explore.'

The repeal of WOWGR opens up exciting possibilities for whisky cask investors, but in an industry based on provenance and authenticity it's important to understand the potential pitfalls of these new regulations. Partnering with a trusted, established firm like London Cask Traders ensures continued security, transparency and traceability in whisky cask ownership, helping investors navigate this evolving market with confidence.

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