applies the standard rate to goods which would otherwise be
general items 1 - 3 of
Group 1 (
food, animal food, seeds or other means of
propagationof plants comprised in items 1 or 2),
when they are in any way
packaged or prepared for use home
brewing and wine making.
It was introduced with effect from 1st April 1977 by the Value Added Tax (Food) Order 1976(SI 1976 no. 2025) in order to resolve anomalies between the tax position of home-made and excisable alcoholic beverages and also between kits for domestic beer making (previously mostly composed of zero-rated elements) and those for domestic wine making (previously mostly composed of standard-rated fruit juices and concentrates).
Standard rating applies to:
Non-food materials used in home brewing and wine making, such as finings, isinglass, equipment etc are standard-rated under the general VAT provisions rather than those of excepted item 7, since they are not food within Group 1.
only applies to food or food ingredients prepared and packaged for home brewing and home wine making. The same materials, (malt, hops, hop extract, barley etc), not prepared in this way and supplied to the commercial brewing industry, are therefore zero- rated, even though they will be incorporated into a food which is itself excluded from zero- rating (beer being standard-rated by virtue of excepted item 3 to group 1).