Policy paper
Reform of Alcohol Duty rates and reliefs
This measure makes changes to duty rates for alcoholic products, establishing common tax bands based on strength. It also introduces 2 new reliefs and a temporary easement for the wine industry.
Documents
Details
This measure:
- replaces previous methods for working out alcohol duty with a standard method for all alcohol products, based on the litres of pure alcohol they contain
- replaces provisions in existing primary legislation and removes outdated provisions
- replaces and extends Small Brewers Relief, with Small Producers Relief (small businesses who produce qualifying alcoholic products will be eligible for reduced rates of alcohol duty)
- introduces a new draught relief to reduce the tax burden on products sold in on-trade venues, such as pubs
- introduces a temporary easement on qualifying wine products for 18 months, to manage the transition to the new method of working out Alcohol Duty
- read the new alcohol duty system consultation and summary of responses
Updates to this page
Published 23 September 2022