Budget Notes

BN91 ALCOHOL DUTY: RATES

Who is likely to be affected?

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

General description of the measure

2. Legislation will be introduced in Finance Bill 2008 to provide for the annual setting of duty rates for alcohol. Duty rates will increase by 6 per cent in real terms for all alcoholic drinks. The impact of the changes on retail prices for typical alcoholic drinks is equivalent to:

•    55 pence on a 70cl bottle of spirits @ 37.5% abv;

•    4 pence on a pint of beer;

•    3 pence on a litre of still cider;

•    14 pence on a 75cl bottle of sparkling cider;

•    14 pence on a 75cl bottle of wine or made-wine; and

•    18 pence on a 75cl bottle of sparkling wine.

3. The Small Brewers Relief scheme will continue to provide 50 per cent duty relief to the smallest brewers.

Operative date

4. These changes will have effect on and after 17 March 2008.

Current law and proposed revisions

5. The Alcoholic Liquor Duties Act 1979 and the HM Revenue & Customs Tariff will be amended to effect the changes.

Further advice

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

The alcohol duty rates will be as follows:

Type Rate
Rate £ per litre of pure alcohol
Spirits 21.35
Spirits-based Ready To Drinks 21.35
Wine and made-wine: Exceeding 22% abv 21.35
Rate £ per hectolitre per cent of alcohol in the beer
Beer 14.96
Rate £ per hectolitre of product
Still cider and perry: Exceeding 1.2% - not exceeding 7.5% abv. 28.90
Still cider and perry: Exceeding 7.5% - less than 8.5% abv. 43.37
Sparkling cider and perry: Exceeding 1.2% - not exceeding 5.5% abv. 28.90
Sparkling cider and perry: Exceeding 5.5% - less than 8.5% abv. 188.10
Wine and made-wine: Exceeding 1.2% - not exceeding 4% abv 59.87
Wine and made-wine: Exceeding 4% - not exceeding 5.5% abv. 82.32
Still wine and made-wine: Exceeding 5.5% - not exceeding 15% abv. 194.28
Wine and made-wine: Exceeding 15% - not exceeding 22% abv. 259.02
Sparkling wine and made-wine: Exceeding 5.5% - less than 8.5% abv. 188.10
Sparkling wine and made-wine: 8.5% and above -not exceeding 15% abv 248.85