Policy paper

Reform of the Alcohol Duty System

This measure makes changes to the duty system for alcoholic products, establishing common tax bands based on strength and introduces 2 new reliefs and a temporary easement for the wine industry.

From:
HM Revenue & Customs
Published
23 March 2023

Documents

Reform of Alcohol Duty Rates and Reliefs

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Details

This measure:

  • replaces previous methods for working out Alcohol Duty with a standard method for all alcohol products, based on the litres of pure alcohol they contain
  • replaces provisions in existing primary legislation and removes outdated provisions
  • replaces and extends Small Brewers Relief, with Small Producer Relief (small businesses who produce qualifying alcoholic products will be eligible for reduced rates of Alcohol Duty)
  • introduces a new Draught Relief to reduce the tax burden on products sold in on-trade venues, such as pubs
  • introduces temporary provisions for qualifying wine products for 18 months, to manage the transition to the new method of calculating Alcohol Duty
  • includes the final consultation response
Published 23 March 2023

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