The Glugger - Flipbook - Page 14
HOW DOES THE NEW
DUTY REFORM
EFFECT US AT THE BAR
On 1 August 2023, the
Alcohol Duty system has
in effect become much
simpler, by taxing all
alcoholic drinks based
on their alcohol by
volume (ABV).
This replaces the previous Alcohol
Duty system, which consists of four
separate taxes covering beer, cider,
spirits, wine and made-wine.
This sees the biggest reform of
alcohol duties for more than 140
years. Small businesses as well
as pubs and restaurants will benefit
from reduced rates on qualifying
products, such as draught beer
and cider.
The new system has now created
six standardised alcohol duty
bands across all types of alcoholic
products and applies to all
individuals and businesses involved
in the manufacture, distribution,
holding and sale of alcoholic
products across the UK.
All alcohol products across all
categories will pay the same rate
of duty. There will no longer be
premium rates for sparkling wine,
as duty will be charged at the same
rate as for still wines. However,
recognising the impact that these
changes will have on the alcohol
industry, there will be transitional
arrangements for certain wine
products. These took effect from
1 August 2023 and run for 18
months, until 31 January 2025.
To support innovation and
responsible drinking, low strength
drinks below 3.5% ABV will be
charged at a new lower rate of
duty. In making these changes,
the government aims to support
public health, encourage product
innovation, and ensure the alcohol
duty system reflects modern
drinking practices.
In addition, the government is
introducing new relief to support
businesses. These will include a
Draught Relief, which is a lower
rate of duty. It will apply to alcoholic
products under 8.5% ABV, which
are in containers of 20 litres or
more and designed to be sold on
draught. At Spring Budget 2023
the Chancellor announced an
even more generous Draught
Relief rate, to specifically support
businesses in the hospitality
industry. By widening the gap
between the Draught Relief rate
and the standard alcohol duty rate
from 5% to 9.2%, the government
has ensured that the duty on a pint
in a pub will not increase on
1 August 2023.
Find out more by visiting www.gov.uk
or asking your Tolchards Area Sales Manager
The government will also introduce
a more generous Small Producer
Relief, which will extend the
benefits of the current Small
Brewer Relief to alcohol producers
in other product categories,
for alcoholic products
under 8.5% ABV.
Together, these changes will help
bring relief to small producers,
in turn supporting the hospitality
sector. The Windsor Framework
will enable the government to
apply the alcohol duty reforms in
Northern Ireland. The government
is currently working through the
details of implementing the Windsor
Framework and will set out more
detail in the coming weeks.
These reforms will impact
individuals and businesses involved
in the manufacture, distribution,
holding, sale and consumption of
alcoholic products across the UK.
