At Autumn Budget 2021, the UK Government published a consultation which ran from 27 October 2021 to 30 January 2022, inviting stakeholders to submit their views on the proposed reforms to the alcohol duty system.
The Alcohol Duty Review aims to improve the current system – by making it simpler, more economically rational and less administratively burdensome on businesses and HMRC.
On 1 August 2023 the UK Government will introduce new alcohol duty rates based on products’ alcoholic content (the ABV), whilst freezing alcohol duty rates from 1 February 2023.
The new alcohol duty system also includes an easement for the wine industry for the first 18 months of the new system, an amended draught products relief (smaller container sizes, to support small businesses in the hospitality industry), and a small producer relief (extending the Small Brewers Relief).
HMRC are running a small producer survey to help give them a greater understanding of economies of scale across the industry. The survey will be open until 21 October 2022.
Find out more about the upcoming changes to the alcohol duty system on GOV.UK.