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HMRC internal manual

Cider Guidance

HM Revenue & Customs
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Cider production: spoilt cider: introduction and law

The law which covers spoilt cider relief is section 2 of the Finance (No.2) Act 1992 (that is, covering Drawback) and regulations 25 to 29 of the Cider and Perry Regulations 1989. They provide relief from duty on cider which has become spoilt or unfit for use after it has been removed from registered premises.

The circumstances in which cider makers may judge ciders to be spoilt are many and varied. The decision that cider is spoilt is entirely the cider makers.

Regulation 25(1) entitles a registered cider maker to recover duty on cider which has not or will not be consumed in the UK. It does not matter how the cider became spoilt or unfit for use.

Note: Any cider which has been accidentally lost or destroyed after leaving registered premises, is not entitled to relief under regulation 25(1).

Under regulation 25(2), a claimant must comply with the conditions in the regulations and any other conditions imposed in a public notice. Detailed information on spoilt cider relief can be found in section 13 of Notice 162 (GOV.UK).