You may qualify for relief from Alcohol Duty if you use alcohol as an ingredient, or for medical, scientific and manufacturing purposes.
You may claim relief from duty for alcohol that you use:
- to make foodstuffs
- to make goods not intended for human consumption
- for a medical or scientific purpose
Alcoholic Ingredients Relief
If you manufacture certain products for wholesale supply, Alcoholic Ingredients Relief lets you:
- claim a refund on the Alcohol Duty you have paid on spirits, beer, cider, perry, wine and made-wine
- use duty unpaid alcohol
You can claim Alcoholic Ingredients Relief if you manufacture for wholesale supply:
- drinks with a strength of 1.2% ABV (alcohol by volume) or less
- chocolates with no more than 8.5 litres of alcohol per 100 kilograms of chocolate
- other foods (not drinks) containing no more than 5 litres of alcohol per 100 kilograms of the final product
You don’t need authorisation or approval, but you do need to follow specific rules to make a claim.
Relief for medical, scientific or manufacturing use
You can apply to receive spirits without payment of Spirits Duty if you use spirits for:
- medical purposes
- scientific purposes
- making goods that are not intended to be eaten
Alternatively, you may be able to use denatured alcohol.
Before you can receive duty-free spirits for medical or scientific purposes, you need to apply to HM Revenue and Customs for authorisation using form EX240.