Finance Bill Tracking Service 2009 | Budget 2009

BN86 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. All duty rates for alcohol will rise by 2 per cent from their current levels.

Legislation will be introduced in Finance Bill 2009 to provide for these duty rate changes. The impact of the changes on retail prices for typical alcoholic drinks is equivalent to:

•    13 pence on a 70cl bottle of spirits;

•    1 pence on a pint of beer;

•    1 pence on a litre of still cider;

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

•    4 pence on a 75cl bottle of wine/made wine; and

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

Operative date

3. These legislative changes will have effect on and after 23 April 2009.

Current law and proposed revisions

4. The Alcoholic Liquor Duties Act 1979 and the HM Revenue & Customs Tariff will be amended to effect the changes. The effective rates of duty on alcoholic drinks will be as shown in the table below.

Further advice

5. 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 22.64
Spirits-based Ready To Drinks 22.64
Wine and made-wine: Exceeding 22.64
22% abv
Rate £ per hectolitre per cent of
alcohol in the beer
Beer 16.47
Rate £ per hectolitre of product
Still cider and perry: Exceeding 1.2% 31.83
- not exceeding 7.5% abv.
Still cider and perry: Exceeding 7.5% 47.77
- less than 8.5% abv.
Sparkling cider and perry: 31.83
Exceeding 1.2% - not exceeding 5.5%
abv.
Sparkling cider and perry: 207.20
Exceeding 5.5% - less than 8.5% abv.
Wine and made-wine: Exceeding 65.94
1.2% - not exceeding 4% abv
Wine and made-wine: Exceeding 4% 90.68
- not exceeding 5.5% abv.
Still wine and made-wine: Exceeding 214.02
5.5% - not exceeding 15% abv.
Wine and made-wine: Exceeding 285.33
15% - not exceeding 22% abv.
Sparkling wine and made-wine: 207.20
Exceeding 5.5% - less than 8.5% abv.
Sparkling wine and made-wine: 274.13
8.5% and above -not exceeding 15%
abv.