Alcohol Duty: new rates and reliefs

3rd July, 2023

Producers, importers, and resellers of alcoholic products have until 1‌‌‌ ‌‌August 2023 to prepare for the changes to the Alcohol Duty structure and the new reliefs. At Spring Budget 2023 the Chancellor confirmed changes to the structure of the Alcohol Duty system, creating standardised tax bands for all alcoholic products based on alcohol by volume (ABV).

The changes will include:

• a Small Producer Relief: which reforms and extends the relief currently enjoyed by small breweries, to all alcoholic products under 8.5% ABV

• a reduced rate for draught products, also known as Draught Relief: which reduces the tax due on draught alcoholic products under 8.5% ABV, packaged in containers of at least 20 litres, and designed to connect to a qualifying dispense system

• transitional arrangements for producers and importers of some wine products: to help them move to the new method of calculating the duty on their products. This will be in place for 18 months, from 1‌‌‌ ‌‌August 2023 until 1‌‌‌ ‌‌February 2025