Alcohol Duty set for August overhaul

07 Jul 2023

The UK's Alcohol Duty system will undergo its biggest overhaul in over 140 years this August.

The change will see all alcoholic drinks taxed based on their alcohol by volume (ABV).

The new system will create six standardised alcohol duty bands across all types of alcoholic products. These will be applied to all individuals and businesses involved in the manufacture, distribution, holding and sale of alcoholic products across the UK.

This replaces the current Alcohol Duty system, which consists of four separate taxes covering beer, cider, spirits, wine and made-wine.

The government says, the changes will make the system fairer and responsive to new products entering the market as consumer tastes evolve.

Small producers, including pubs and restaurants, will benefit from reduced rates on qualifying products, such as draught beer and cider, according to the government.

Jonathan Athow, Director General of Customer Strategy & Tax Design, HMRC, said: 'After listening to feedback from industry, economists, public health groups and many business owners, the new Alcohol Duty system will be based on the founding principle of taxing alcoholic products by strength, ensuring consistency across the board for the first time.

'The new system will support the government's public health objectives and provide extra support to small producers, pubs and the hospitality sector.'