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.

Alcohol duty rates are as follows: