News

2.120 Alcohol duty rates – As first announced at Budget 2008, alcohol duty rates will increase by 2 per cent above the RPI on 28 March 2011. This will add 4 pence to the price of a pint of beer, 15 pence to the price of a bottle of wine, and 54 pence to the price of a bottle of spirits. (Finance Bill 2011)

2.121 Changes to the beer duty regime – The review of alcohol taxation in November 2010 announced measures to encourage the consumption of lower strength beers. The Government will introduce a new additional duty on beers over 7.5 per cent alcohol by volume (abv) in strength at a rate of 25 per cent of general beer duty. This will add 25 pence to the price of a can of “super strength” lager. A reduced rate of 50 per cent of general beer duty will be introduced for beers of 2.8 per cent abv or below and above 1.2 per cent abv in strength. This will reduce the price of a pint of beer at 2.8 per cent abv by 18 pence. These changes will come into effect from 1 October 2011. (Finance Bill 2011)

2.122 Repeal of Alcoholic Liquor Duties Act 1979 (ALDA) section 22 – The Government will repeal the redundant legislation in section 22 of ALDA that allows for drawback on British
compounds and spirits of wine. (Finance Bill 2012)

2.123 Potential legislative measures to tackle alcohol fraud and duty avoidance – The Government will explore potential legislative measures to tackle existing and emerging threats to alcohol duty receipts. (Finance Bill 2012)