Finance Bill Tracking Service 2007 | Budget 2007 | Budget Notes

BN71 Alcohol duty rates

Who is likely to be affected?

1   Manufacturers, importers, distributors, retailers and consumers of certain alcohol products (beer, cider, wine and made-wine).

General description of the measure

2   Legislation in Finance Bill 2007 will provide for the Annual Setting of Duty Rates for Alcohol. The rate changes are as follows:

•   Duty on beer will increase in line with inflation, adding 1 penny to a pint of beer;

•   Duty on wine and made-wine will increase in line with inflation, adding 5 pence to a 75cl bottle of wine or made-wine;

•   Duty on still cider will increase in line with inflation, adding 1 penny to a litre of still cider;

•   Duty on sparkling cider will increase in line with inflation, adding 5 pence to a 75cl bottle of sparkling cider;

•   Duty on spirits is frozen;

•   Duty on sparkling wine will increase in line with inflation, adding 7 pence to a 75cl bottle of sparkling wine;

•   The Small Brewers Relief scheme will continue to provide 50% duty relief to the smallest brewers;

Operative date

3   The revised rates take effect from Monday 26th March 2007

Current law and proposed revisions

4   The Alcoholic Liquor Duties Act 1979 and the HM Revenue and Customs Tariff will be amended to reflect the changes.

Further advice

5   If you have any questions about this change, please contact the HMRC National Advice Service on 0845 010 9000. Information about Budget measures is available on the HM Revenue & Customs website at www.hmrc.gov.uk