It's a smoke ring from a pyrotechnic device at Warwick castle:
http://www.bbc.com/news/blogs-magazine-monitor-27037579
External Quote:
The eventual answer came in the middle of Tuesday afternoon when a statement from Warwick Castle confirmed that they had been testing fireworks.
A Warwick Castle spokesman said they had been testing "fire effects" to go with the daily firing of the Trebuchet Fireball - a giant catapult.
"We've seen a number of different effects, including the vortex images that have been reported," the spokesman said.
A smoke ring is formed by fireball type explosion - typically a fuel-air burn, with gasoline. The relatively low speed burn creates two things: Smoke, which ends up in the ring, and heat, which creates the rapid upwards motion, and creates the vortex around the edge of the column of rising air. It starts out like this. Notice the fireball has risen quite a bit from the source, and the rotation is already apparent around the base.
Here's a more detailed look at the entire process from a smoke-ring making machine:
And another from just a simple home-made explosive mix. Notice it's not a simple explosion - it's a relatively slow burn, which gives it the upwards motion, and then the vortex.
These smoke rings probably happen quite a lot in pyrotechnic displays. BUt those displays are usually at night, so you don't see the ring. You saw it here because they were testing it in the daytime.