Information from HMRC

HMRC have published intentions to reform the current system, expectations are that this will apply from 1st August 2023. Information published by the government can be accessed below:

The response to the previous consultation on the new alcohol duty system
The accompanying draft primary legislation and the draft secondary legislation and
The newly launched secondary legislation consultation seeking views on the draft.
The new tax code structure is visible to view by expanding the section below

New tax code structure

Based on the information we currently have available this will be as follows:

Code	Description and ABV %	Rate

Code	Description and ABV %	Rate
301	Low Alcohol - not exceeding 1.2%	£0.00
311	Beer less than 3.5%	£9.27
312	Cider less than 3.5%	£9.27
313	Wine less than 3.5%	£9.27
314	Other fermented products less than 3.5%	£9.27
315	Spirits less than 3.5%	£9.27
321	Beer at least 3.5 but less than 8.5%	£21.01
322	Cider at least 3.5 but less than 8.5% & sparkling cider at least 3.5 not exceeding 5.5%	£9.67
323	Wine at least 3.5 but less than 8.5%	£24.77
324	Other fermented products at least 3.5 but less than 8.5% & sparkling cider exceeding 5.5 but less than 8.5%	£24.77
325	Spirits at least 3.5 but less than 8.5%	£24.77
331	Beer at least 8.5 but not exceeding 22%	£28.50
333	Wine at least 8.5 but not exceeding 22%	£28.50
334	Other fermented products at least 8.5 but not exceeding 22%	£28.50
335	Spirits at least 8.5 but not exceeding 22%	£28.50
341	Beer exceeding 22%	£31.64
343	Wine exceeding 22%	£31.64
344	Other fermented products exceeding 22%	£31.64
345	Spirits exceeding 22%	£31.64
351	Beer less than 3.5% & eligible for Draught Relief	£8.42
352	Cider less than 3.5% & eligible for Draught Relief	£8.42
353	Wine less than 3.5% & eligible for Draught Relief	£8.42
354	Other fermented products less than 3.5% & eligible for Draught Relief	£8.42
355	Spirits less than 3.5% & eligible for Draught Relief	£8.42
356	Beer at least 3.5 but less than 8.5% & eligible for Draught Relief	£19.08
357	Cider at least 3.5 but less than 8.5% & Sparkling cider at least 3.5 but less than not exceeding 5.5% & eligible for Draught Relief	£8.78
358	Wine at least 3.5 but less than 8.5% & eligible for Draught Relief	£19.08
359	Other fermented products at least 3.5 but less than 8.5% & Sparkling cider exceeding 5.5 but less than 8.5% & eligible for Draught Relief	£19.08
360	Spirits at least 3.5 but less than 8.5% & eligible for Draught Relief	£19.08
361	Beer less than 3.5% & eligible for Small Producer Relief	Manual *
362	Cider less than 3.5% & eligible for Small Producer Relief	Manual *
363	Wine less than 3.5% & eligible for Small Producer Relief	Manual *
364	Other fermented products less than 3.5% & eligible for Small Producer Relief	Manual *
365	Spirits less than 3.5% & eligible for Small Producer Relief	Manual *
366	Beer at least 3.5 but less than 8.5% & eligible for Small Producer Relief	Manual *
367	Cider at least 3.5 but less than 8.5% & Sparkling cider at least 3.5 but less than not exceeding 5.5% & eligible for Small Producer Relief	Manual *
368	Wine at least 3.5 but less than 8.5% & eligible for Small Producer Relief	Manual *
369	Other fermented products at least 3.5 but less than 8.5% & Sparkling cider exceeding 5.5 but less than 8.5% & eligible for Small Producer Relief	Manual *
370	Spirits at least 3.5 but less than 8.5% & eligible for Small Producer Relief	Manual *
371	Beer less than 3.5% & eligible for Small Producer Relief and Draught Relief	Manual *
372	Cider less than 3.5% & eligible for Small Producer Relief and Draught Relief	Manual *
373	Wine less than 3.5% & eligible for Small Producer Relief and Draught Relief	Manual *
374	Other fermented products less than 3.5% & eligible for Small Producer Relief and Draught Relief	Manual *
375	Spirits less than 3.5% & eligible for Small Producer Relief and Draught Relief	Manual *
376	Beer at least 3.5 but less than 8.5% & eligible for Small Producer Relief and Draught Relief	Manual *
377	Cider at least 3.5 but less than 8.5% & Sparkling cider at least 3.5 but less than not exceeding 5.5% & eligible for Small Producer Relief and Draught Relief	Manual *
378	Wine at least 3.5 but less than 8.5% & eligible for Small Producer Relief and Draught Relief	Manual *
379	Other fermented products at least 3.5 but less than 8.5% & Sparkling cider exceeding 5.5 but less than 8.5% & eligible for Small Producer Relief and Draught Relief	Manual *
380	Spirits at least 3.5 but less than 8.5% & eligible for Small Producer Relief and Draught Relief	Manual *

The biggest change planned to affect our customers will be to the excise tax codes rates structure where all products across all categories will be taxed in reference to the litres of pure alcohol they contain, as is currently the case for spirits. All categories will move to a standardised series of bands for the rates, reducing the overall number of different rates available. Changes are also planned to small brewers relief (to become small producer relief) which is probably where the software’s biggest changes lie.

FAQ’s

What is the new tax code structure? A: Expand the section above to see.
Does the transitional easement apply to only wine or also made wine? HMRC: The wine easement only applies to the ‘wine’ category, specifically the 333 tax-type in the new structure. Made-wine is now the Other Fermented Product category, but the easement does not apply to any Other Fermented Product tax types.

2023 UK New Alcohol Duty System

Information from HMRC

New tax code structure

FAQ’s