Guidance

Cider Duty

Find out if you need to register for Cider Duty as a commercial cider or perry maker and how to submit returns and payments.

Overview

Generally, cider (or perry) is made from fermented apple or pear juice and has a strength of more than 1.2% alcohol by volume (ABV) but less than 8.5% ABV. Read the full definition of cider or perry for Cider Duty purposes.

When Cider Duty applies

Cider becomes liable for Cider Duty as soon as it is ‘produced’ (when it has exceeded a strength of 1.2% ABV) or when it is imported into the UK.

Cider becomes liable to the ‘sparkling’ rates of duty if it has an actual alcoholic strength by volume exceeding 5.5% but less than 8.5%.

Cider is treated as a made-wine or spirit for duty and licensing purposes if any of the following apply:

Registration

Generally, if you make or propose to make more than 7,000 litres in a 12 month period, you should:

  • register with HM Revenue and Customs (HMRC) as a cider maker using form CP30
  • complete 1 form for every set of premises where you intend to make cider for sale, along with plans of your premises
  • make it clear where you’ll keep your cider-making equipment, along with any identifiable markings on the equipment

If you make or propose to make less than 7,000 litres in a 12 month period, you don’t normally need to register with HMRC or pay Cider Duty. But you’ll need to complete form CP33.

Read more detailed information about producing cider and registration.

Your responsibilities

As a registered cider maker, you must:

  • keep specific records and accounts
  • calculate any Cider Duty due and make monthly returns and payments on time
  • comply with all other requirements of Notice 162

Returns and payments

You must submit a cider return form EX606 (which HMRC will send to you at the end of each accounting period) and pay any Cider Duty declared by the 15th of the month after the accounting period. You must submit the form even if your duty liability is nil.

Where cider or perry is placed in an excise warehouse, you must pay the Cider Duty using either:

Read more on Cider Duty accounts and returns.

Read about completing forms W5 or W5D.

Cider Duty suspension

In some circumstances, you may not have to pay Cider Duty to HMRC immediately. You can:

  • hold cider that you have made on your registered premises in duty suspension
  • send it to another registered cider maker for further processing
  • send it to an excise warehouse approved to hold cider in duty suspension for storage purposes or carry out certain permitted processes - for example bottling

If you want to deposit your cider in an excise warehouse, you will need to be approved as a registered owner of warehoused goods. The excise warehouse must also be approved to hold cider in duty suspension.

You can also receive into your registered premises (and continue to hold in duty suspension):

  • cider from other registered cider makers for you to carry out further processing on it
  • your own cider after it’s been processed elsewhere

You can’t receive duty-suspended cider in a ready-for-sale state unless it was produced on your registered premises.

Cider Duty becomes payable to HMRC as soon as one of the following happens:

  • when it leaves duty suspension for sale on the UK market
  • the cider is consumed
  • you decide you want to pay the duty early, perhaps for accounting purposes - this is called ‘constructive removal’

These events are known as ‘duty points’.

Read more about receiving, storing and moving excise goods.

Cider Duty rates

Cider Duty is charged according to the ABV of the cider or perry and whether it’s sparkling or still.

Get the latest Cider Duty rates.

Published 9 November 2009