Alcohol duties raised on 1st August 2023

It is important that you are aware of these changes 

The 1^st August 2023 was a landmark date that saw the biggest reform of alcohol duties for more than 140 years. Put simply, the government has now introduced a new, simplified alcohol duty scheme based on the principle of taxing alcohol drinks by their alcohol contents (ABU). 

This significant move will modernise the existing alcohol duties system. It will also reduce administrative burdens on businesses and support public health. The new rules will affect individuals and businesses involved in the manufacture, distribution, holding, sale and consumption of alcoholic products. 

At Aerona we believe that it is well worthwhile summerising the effects that the new legislation will have. 

Put simply, the government has now increased the duty rates from 1^st August 2023 in line with the Retail Price Index (RPI). This includes all alcoholic products produced in, or imported into the UK. 

In addition the government will also increase the value of Draught Relief from 5% to 9.2% for qualifying beer and cider products and from 20% to 23% for qualifying wine, other fermented wine, other fermented products (previously made wine) and spirits. 

You can read more about the new policies here:
https://obr.uk/forecasts-in-depth/tax-by-tax-spend-by-spend/alcohol-duties/The rate on wine depends on its strength,spirits is C2 A328.74 per litre of pure alcohol. 

But in a nutshell the revised rates of alcohol duties for all categories of alcoholic products are:

• duty on all alcoholic products less than 3.5% alcohol by volume (ABV): £9.27 per litre of alcohol in the product.
• duty on still cider at least 3.5% but less than 8.5% ABV: £9.67 per litre of alcohol in the product.
• duty on sparkling cider at least 3.5% but not exceeding 5.5% ABV: £9.67 per litre of alcohol in the product.
• duty on beer at least 3.5% but less than 8.5% ABV: £21.01 per litre of alcohol in the product.
• duty on spirits, wine and other fermented products at least 3.5% but less than 8.5% ABV: £24.77 per litre of alcohol in the product.
• duty on sparkling cider exceeding 5.5% ABV but less than 8.5% ABV: £24.77 per litre of alcohol in the product.
• duty on all alcoholic products at least 8.5% but not exceeding 22% ABV: £28.50 per litre of alcohol in the product.
• duty on all alcoholic products exceeding 22% ABV: £31.64 per litre of alcohol in the product.

Wine between 11.5% and 14.5% ABV will be treated as if it is 12.5% ABV for the purposes of calculating the charge to Alcohol Duty from 1 August 2023 until 1 February 2025.

The legislation, as part of the Alcohol Duty Reform will also introduce a new Draught Relief, which will reduce the duty on ‘qualifying draught products’.

The new legislation sets out the Draught Relief rates in schedule 7. The rates including the increased draught relief differential are:

• the reduced rate of duty on all draught alcoholic products less than 3.5% ABV: £8.42 per litre of alcohol in the product.
• the reduced rate of duty on draught still cider at least 3.5% but less than 8.5% ABV: £8.78 per litre of alcohol in the product.
• the reduced rate of duty on draught sparkling cider at least 3.5% but not exceeding 5.5% ABV:£8.78 per litre of alcohol on product.
• the reduced rate of duty on draught beer, spirits, wine and other fermented products at least 3.5% (but less than 8.5%): £19.08 per litre of alcohol in the product.
• the reduced rate of duty on sparkling cider and perry exceeding 5.5% but less than 8.5% ABV: £19.08 per litre of alcohol in the product.

If you have any queries regarding these new alcohol duties, then please contact Aerona and we will do our very best to clarify the situation for you. You can contact Aerona by telephoning 0161 652 3443. You could also email us at: sales@aerona.co.uk or you can send us a message using the form that can be found on our Contact page.
Please remember, at Aerona we are here to help you.