Frequently Asked Questions: Your Guide to Investing with Dolium Holdings
Yes, if you have an existing account with an HMRC-approved cask maturation warehouse, we can arrange for a Delivery Order (DO) to your account. Please note that you will be responsible for all storage, transportation, and insurance costs from the date of the DO.
ABV stands for ‘Alcohol By Volume,’ which measures the percentage of alcohol in a given volume of liquid.
The term “angels’ share” refers to the small amount of rum that evaporates from the cask during maturation. This loss can be up to 2% per year, although it is often less.
OLA stands for ‘Original Litres of Alcohol,’ and RLA stands for ‘Regauged Litres of Alcohol.’ OLA represents the amount of pure alcohol initially filled into the cask, while RLA indicates the remaining amount of pure alcohol after a regauge, which checks the cask's health, contents, and value.
Bulk litres refer to the total volume of liquid in a cask, including both pure alcohol and other liquid. For example, a cask with 200 bulk litres at 64% ABV contains 128 litres of pure alcohol (64% of 200).
Duty suspension applies when your cask is stored or transported between bonded warehouses. It means you do not need to pay duty, which is a tax imposed by HMRC on alcohol (currently £31.64 per litre of pure alcohol), until the spirit is removed from bond.
An HMRC-approved bonded warehouse is an excise warehouse where goods are stored and held free from duty and VAT. A WOWGR licence (Warehousekeepers and Owners of Warehoused Goods Regulations) is a certificate granted to companies that meet HMRC’s strict requirements for storing spirituous beverages under duty suspension. This licence is not available to the public.
The duration for holding your cask is entirely up to you. We will discuss your preferences before purchase to tailor the plan to your needs. Generally, a minimum of 5-10 years is recommended, but holding for a longer period can enhance the rum, increase its rarity, and potentially improve returns.
In the event of the cask owner’s death, we will require a death certificate. Following receipt, we will act on the instructions provided by the executor of the will.
No, there is no set minimum purchase price. The price of the lowest value cask available at the time of your inquiry will apply, which can vary daily.
Your cask is fully insured against fire, theft, and accidental damage. Any excess on the policy will be covered by Dolium, ensuring that in the event of a claim, you receive the full market value of the cask at that time.
In the unlikely event of an acquisition or collapse, your cask remains your property. Detailed paperwork and individually numbered casks held under our WOWGR at an HMRC-approved excise warehouse verify your ownership. The casks do not appear on our balance sheet and are not subject to sale for settling debts or claims. Even if Dolium ceases operations, your cask remains securely yours.
HMRC classifies rum casks as 'wasting assets,' which means they are not subject to Capital Gains Tax. Rum casks are porous, causing a small amount of rum to evaporate annually and some to be absorbed by the wood, typically no more than 2% (referred to as the angel’s share). A wasting asset is defined as having a predictable lifespan of 50 years or less. Due to this evaporation, it is unlikely that your cask will last beyond 50 years.
Inheritance Tax (IHT) does not apply between spouses. However, it affects children and grandchildren. Upon the second death of a married couple, all assets are aggregated by HMRC and taxed at 40% above the 'nil rate band (NRB)', which is currently £325,000.
If your cask is damaged, you will be covered under the 'accidental damage' section of your insurance policy, which will reimburse you for the full value of the cask at the time of the claim.
Scams can be prevalent in any successful industry. With 7 years of experience, Dolium advises all clients to conduct thorough due diligence when considering a cask rum purchase. Seek independent advice and ensure comprehensive checks are performed on potential sellers. Note that cask rum transactions are not regulated by the FCA and are not covered by the FSCS*. However, they are regulated by HMRC. Be cautious of firms promising unusually high returns or 'guaranteed returns,' those not listed on the WOWGR trading register, and those unwilling to provide a written Delivery Order (DO).
*Financial Services Compensation Scheme
Cask rum purchases come with no guarantees. Offering guarantees would be misleading due to the many factors that influence markets. Historically, holding onto rum casks for the medium to long term has been profitable, but past performance does not ensure future results. Dolium operates on the principle that, with time, the rum you purchased will become older, of higher quality, and more sought after.
Cask rum is regulated by HMRC, not by the Financial Conduct Authority (FCA), which oversees regulated financial investments. Dolium recommends seeking independent legal and financial advice before making any purchase.
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