You may qualify for relief from Alcohol Duty if you use alcohol as an ingredient, or for medical, scientific and manufacturing purposes.
Changes due to coronavirus (COVID-19)
To stop the spread of coronavirus HMRC has made temporary changes to the use and supply of denatured alcohol and duty-free spirits, to help businesses who produce hand sanitiser and gel.
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.