Alcohol Duty: new rates and reliefs on 1 August 2023

The changes to the Alcohol Duty structure and the new reliefs took effect on 1st‌‌‌ ‌‌August 2023. These include: 

• a new, simpler Alcohol Duty system: standardised Alcohol Duty bands for all types of alcoholic products. There are new duty rates based on alcohol by volume (ABV) for all products
• a Small Producer Relief: which reforms and extends the relief previously enjoyed by small breweries, to producers of all alcoholic products under 8.5% ABV
• a reduced rate for draught products: also known as Draught Relief, which reduces the tax due on draught alcoholic products under 8.5% ABV, packaged in containers of at least 20 litres, and designed to connect to a qualifying dispense system
• transitional arrangements for producers and importers of some wine products: to help them with moving to the new method of working out the duty on their products. This allows businesses to use an 'assumed strength' of 12.5% ABV, when working out the duty for wines with an ABV between 11.5% and 14.5% ABV. This measure is in place for 18 months, from 1‌‌‌ ‌‌August 2023 until 1‌‌‌ ‌‌February 2025

Make sure you understand what has changed for Alcohol Duty by reading the guidance in English or in Welsh, and by listening to HMRC webinars.
 
If you are a small producer of alcoholic products, you can also use the Small Producer Relief calculator to help you work out how much duty you need to pay.