This measure makes changes to the duty system for alcoholic products, establishing common tax bands based on strength and introduces 2 new reliefs and a temporary easement for the wine industry.
Reform of Alcohol Duty Rates and Reliefs
- 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- replaces provisions in existing primary legislation and removes outdated provisions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 Producer 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 temporary provisions for qualifying wine products for 18 months, to manage the transition to the new method of calculating Alcohol Duty
- includes the final consultation response