1st September 2023
At the 2023 Spring Budget, the Chancellor announced changes to the structure of the Alcohol Duty system, creating standardised tax bands for all alcoholic products based on alcohol by volume (ABV).
The following changes and new reliefs took effect from 1 August 2023:
A new, simpler Alcohol Duty system
The new system standardises the duty bands for all types of alcoholic products, with new duty rates based on alcohol by volume (ABV) for all products.
Small Producer Relief
A duty relief extended to small producers of all alcoholic products under 8.5% ABV.
Reduced rates for draught products
Also known as Draught Relief. A lower rate of duty for draught alcoholic products under 8.5% ABV, which are packaged in containers of at least 20 litres, and designed to connect to a qualifying system for dispensing individual drinks.
Temporary arrangements for producers or importers of wine
A temporary method of working out duty on some wine products. This will last for 18 months, from 1 August 2023 until 1 February 2025. These allow businesses to use an ‘assumed strength’ of 12.5% ABV when working out the duty owed on wines between 11.5% and 14.5% ABV.
If you have any queries, please do not hesitate to contact us.