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HMRC internal manual

Denatured Alcohol: main contents

HM Revenue & Customs
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Penalties and assessments: Procedure for assessing for duty

Penalties that fall within sections 78(4) or (5) of the Alcoholic Liquor Duties Act 1979 will result in a liability to pay the duty on the amount of dutiable alcoholic liquor contained in the denatured alcohol concerned. In such cases the Commissioners must make a demand for the duty. This demand must be accompanied by an assessment (form EX601).

The legal basis for this is section 78(7) of the Alcoholic Liquor Duties Act 1979 which states:

Force of law

A demand made for the purposes of subsection 78(4) or 78(5) above shall be combined, as if there had been a default such as is mentioned in that section, with an assessment and notification under section 12 of the Finance Act 1994 (assessments to excise duty) of the amount of duty due in consequence of the making of the demand.

A suggested format for the demand follows at DNALC13355. More information on issuing assessments can be found in X51: Excise Assessments.