How to work out your Alcohol Duty rates if you’re eligible for Small Producer Relief
The figures you’ll need and how to use them to work out your discounted duty rates.
Before you start
You must check:
- if you’re eligible for Small Producer Relief
- which products you can pay less duty on
- how to work out your annual alcohol production
You can check if you’re eligible to pay less Alcohol Duty as a small producer.
What you need to do
To find out your duty rates you need to:
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Work out your annual pure alcohol production in hectolitres across all your products.
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Check which product categories and lookup tables apply to your products.
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Follow the steps to work out your discount amount for each product category.
-
Subtract the discount amount from the full duty rate to get your small producer rate for each category.
Your annual alcohol production figure
This is the total pure alcohol content in hectolitres for all the products you either:
- made on your premises in the previous production year
- estimate that you’ll make on your premises in the current production year, if you are a new business
Product categories and lookup tables
You get different discounts as a small producer depending on:
- your product type
- if your product is sold on draught
- how many hectolitres of pure alcohol you produce annually
You’ll need to use the figures in the lookup tables in this guide to follow the steps to work out your duty discount.
Your eligibility for a discount band is determined by your production amount across all products. Your production amount must be more than the start point of the band but not more than the end point.
Alcoholic products (other than spirits) less than 3.5% ABV (non-draught)
| Band | Band thresholds in hectolitres | Marginal discount in £ (pounds) | Cumulative discount in £ (pounds) |
|---|---|---|---|
| 1 | 0 to 5 | 9.27 | 0.00 |
| 2 | 5 to 50 | 2.32 | 46.35 |
| 3 | 50 to 100 | 1.39 | 150.75 |
| 4 | 100 to 200 | 0.46 | 220.25 |
| 5 | 200 to 600 | 0.00 | 266.25 |
| 6 | 600 to 1,000 | 0.00 | 266.25 |
| 7 | 1,000 to 4,500 | -0.08 | 266.25 |
Draught alcoholic products (other than spirits) less than 3.5% ABV
| Band | Band thresholds in hectolitres | Marginal discount in £ (pounds) | Cumulative discount in £ (pounds) |
|---|---|---|---|
| 1 | 0 to 5 | 8.42 | 0.00 |
| 2 | 5 to 50 | 2.11 | 42.10 |
| 3 | 50 to 100 | 1.26 | 137.05 |
| 4 | 100 to 200 | 0.42 | 200.05 |
| 5 | 200 to 600 | 0.00 | 242.05 |
| 6 | 600 to 1,000 | 0.00 | 242.05 |
| 7 | 1,000 to 4,500 | -0.07 | 242.05 |
Spirits less than 3.5% ABV (non-draught)
| Band | Band thresholds in hectolitres | Marginal discount in £ (pounds) | Cumulative discount in £ (pounds) |
|---|---|---|---|
| 1 | 0 to 5 | 6.03 | 0.00 |
| 2 | 5 to 50 | 2.32 | 30.15 |
| 3 | 50 to 100 | 1.39 | 134.55 |
| 4 | 100 to 200 | 0.46 | 204.05 |
| 5 | 200 to 600 | 0.00 | 250.05 |
| 6 | 600 to 1,000 | 0.00 | 250.05 |
| 7 | 1,000 to 4,500 | -0.07 | 250.05 |
Draught spirits less than 3.5% ABV
| Band | Band thresholds in hectolitres | Marginal discount in £ (pounds) | Cumulative discount in £ (pounds) |
|---|---|---|---|
| 1 | 0 to 5 | 5.47 | 0.00 |
| 2 | 5 to 50 | 2.11 | 27.35 |
| 3 | 50 to 100 | 1.26 | 122.30 |
| 4 | 100 to 200 | 0.42 | 185.30 |
| 5 | 200 to 600 | 0.00 | 227.30 |
| 6 | 600 to 1,000 | 0.00 | 227.30 |
| 7 | 1,000 to 4,500 | -0.06 | 227.30 |
Beer 3.5% to less than 8.5% ABV (non-draught)
| Band | Band thresholds in hectolitres | Marginal discount in £ (pounds) | Cumulative discount in £ (pounds) |
|---|---|---|---|
| 1 | 0 to 5 | 18.91 | 0.00 |
| 2 | 5 to 112.5 | 10.51 | 94.55 |
| 3 | 112.5 to 225 | 9.45 | 1,224.38 |
| 4 | 225 to 450 | 5.25 | 2,287.50 |
| 5 | 450 to 900 | 3.15 | 3,468.75 |
| 6 | 900 to 1,350 | 0.00 | 4,886.25 |
| 7 | 1,350 to 4,500 | -1.55 | 4,886.25 |
Draught beer 3.5% to less than 8.5% ABV
| Band | Band thresholds in hectolitres | Marginal discount in £ (pounds) | Cumulative discount in £ (pounds) |
|---|---|---|---|
| 1 | 0 to 5 | 17.17 | 0.00 |
| 2 | 5 to 112.5 | 9.54 | 85.85 |
| 3 | 112.5 to 225 | 8.59 | 1,111.40 |
| 4 | 225 to 450 | 4.77 | 2,077.78 |
| 5 | 450 to 900 | 2.86 | 3,151.03 |
| 6 | 900 to 1,350 | 0.00 | 4,438.03 |
| 7 | 1,350 to 4,500 | -1.41 | 4,438.03 |
Still cider 3.5% to less than 8.5% ABV, and sparkling cider 3.5% to 5.5% ABV (non-draught)
| Band | Band thresholds in hectolitres | Marginal discount in £ (pounds) | Cumulative discount in £ (pounds) |
|---|---|---|---|
| 1 | 0 to 5 | 9.67 | 0.00 |
| 2 | 5 to 50 | 2.42 | 48.35 |
| 3 | 50 to 100 | 1.45 | 157.25 |
| 4 | 100 to 200 | 0.48 | 229.75 |
| 5 | 200 to 600 | 0.00 | 277.75 |
| 6 | 600 to 1,000 | 0.00 | 277.75 |
| 7 | 1,000 to 4,500 | -0.08 | 277.75 |
Draught still cider 3.5% to less than 8.5% ABV, and draught sparkling cider 3.5% to 5.5% ABV
| Band | Band thresholds in hectolitres | Marginal discount in £ (pounds) | Cumulative discount in £ (pounds) |
|---|---|---|---|
| 1 | 0 to 5 | 8.78 | 0.00 |
| 2 | 5 to 50 | 2.19 | 43.90 |
| 3 | 50 to 100 | 1.32 | 142.45 |
| 4 | 100 to 200 | 0.44 | 208.45 |
| 5 | 200 to 600 | 0.00 | 252.45 |
| 6 | 600 to 1,000 | 0.00 | 252.45 |
| 7 | 1,000 to 4,500 | -0.07 | 252.45 |
Wine and other fermented products 3.5% to less than 8.5% ABV, and sparkling cider over 5.5% ABV (non-draught)
| Band | Band thresholds in hectolitres | Marginal discount in £ (pounds) | Cumulative discount in £ (pounds) |
|---|---|---|---|
| 1 | 0 to 5 | 24.77 | 0.00 |
| 2 | 5 to 50 | 2.48 | 123.85 |
| 3 | 50 to 100 | 2.48 | 235.45 |
| 4 | 100 to 200 | 1.24 | 359.45 |
| 5 | 200 to 600 | 0.00 | 483.45 |
| 6 | 600 to 1,000 | 0.00 | 483.45 |
| 7 | 1,000 to 4,500 | -0.14 | 483.45 |
Draught wine and other fermented products 3.5% to less than 8.5% ABV, and sparkling cider over 5.5% ABV
| Band | Band thresholds in hectolitres | Marginal discount in £ (pounds) | Cumulative discount in £ (pounds) |
|---|---|---|---|
| 1 | 0 to 5 | 19.08 | 0.00 |
| 2 | 5 to 50 | 1.91 | 95.40 |
| 3 | 50 to 100 | 1.91 | 181.35 |
| 4 | 100 to 200 | 0.95 | 276.85 |
| 5 | 200 to 600 | 0.00 | 371.85 |
| 6 | 600 to 1,000 | 0.00 | 371.85 |
| 7 | 1,000 to 4,500 | -0.11 | 371.85 |
Spirits 3.5% to less than 8.5% ABV (non-draught)
| Band | Band thresholds in hectolitres | Marginal discount in £ (pounds) | Cumulative discount in £ (pounds) |
|---|---|---|---|
| 1 | 0 to 5 | 19.82 | 0.00 |
| 2 | 5 to 50 | 2.48 | 99.10 |
| 3 | 50 to 100 | 2.48 | 210.70 |
| 4 | 100 to 200 | 1.24 | 334.70 |
| 5 | 200 to 600 | 0.00 | 458.70 |
| 6 | 600 to 1,000 | 0.00 | 458.70 |
| 7 | 1,000 to 4,500 | -0.13 | 458.70 |
Draught spirits 3.5% ABV to less than 8.5% ABV
| Band | Band thresholds in hectolitres | Marginal discount in £ (pounds) | Cumulative discount in £ (pounds) |
|---|---|---|---|
| 1 | 0 to 5 | 15.26 | 0.00 |
| 2 | 5 to 50 | 1.91 | 76.30 |
| 3 | 50 to 100 | 1.91 | 162.25 |
| 4 | 100 to 200 | 0.95 | 257.75 |
| 5 | 200 to 600 | 0.00 | 352.75 |
| 6 | 600 to 1,000 | 0.00 | 352.75 |
| 7 | 1,000 to 4,500 | -0.10 | 352.75 |
Steps to work out your duty discount
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Work out your total annual alcohol production in hectolitres.
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Find the lookup table for your product category.
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Work out which discount band applies based on your production amount.
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Subtract the band’s threshold start point from your production amount.
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Multiply that figure by the band’s marginal discount.
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Add that figure to the band’s cumulative discount.
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Divide that figure by your production amount.
This gives you your duty discount in £ (pounds) per litre of pure alcohol. This is how much you will get off the full rate of duty for the product.
You must apply the Small Producer Relief (SPR) rate from the time the product has been produced, rather than the rate in place at the time the product passes the duty point. This still applies even if the product passes the duty point in a different production year to when it was produced.
For example, Company A’s product is produced on 15 January and the SPR rate for that year (£10.00) is applied. It passes the duty point on 7 February, in the next production year, when Company A’s SPR rate has risen to £15.00. The SPR rate paid at the duty point for the product is the rate applied on 15 January (£10.00).
How to work out your lower rate of duty
Subtract your duty discount amount from the full rate of duty.
There are different rates for:
Example of a discount and duty rate calculation
Your annual production amount between 1 February up to and including 31 January across all your products was 105 hectolitres of pure alcohol.
One of the products you make is draught beer at 3.4% ABV.
You must use the look up table for ‘draught alcoholic products (other than spirits) below 3.5% ABV’.
Your annual production amount of 105 hectolitres means you fall into discount band 4.
The band 4 start threshold is 100 hectolitres.
Your marginal discount is £0.42.
Your cumulative discount is £200.05.
You need to:
-
Subtract the start threshold from your production amount.
105 – 100 = 5 -
Multiply your answer by the marginal discount.
5 × 0.42 = 2.1 -
Add your answer to the cumulative discount.
2.1 + 200.05 = 202.15 -
Divide your answer by your production amount.
202.15 ÷ 105 = 1.93 (round up to the nearest penny)
Your discount on the standard rate is £1.93 per litre of pure alcohol.
The full duty rate for draught beer at 3.4% ABV is £8.42 per litre of pure alcohol.
Your small producer rate for this product is £8.42 – £1.93 = £6.49 per litre of pure alcohol.
Last updated 29 January 2024 + show all updates
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Information has been added to the steps to work out your duty discount section, to confirm you must apply the Small Producer Relief (SPR) rate from the time the product has been produced and not when the product passes the duty point.
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Added translation