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HMRC internal manual

Beer Guidance

HM Revenue & Customs
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Small brewery beer: Eligibility for reduced rates

Eligibility for reduced rates of duty is based on the quantity of beer produced in a calendar year (January - December). It must include any beer brewed under licence or under contract and there should be no deductions for beer that is subsequently declared to be unfit or spoilt for use. Eligibility is dependent on certain conditions being met. Details of these conditions can be found in paragraphs 8.3.1 and 8.3.2 of Notice 226. These conditions apply to both single brewers and to brewers who are ‘connected’ (or co-operated).

Note. Beer produced under licence can never qualify as small brewery beer.

Brewing under licence or under contract and connected breweries are explained more fully in BEER4040 ‘Connected (or co-operated) breweries’, BEER4050 ‘Production under licence’ and BEER4060 ‘Brewing under contract’.