The Treasury has launched a consultation on proposed changes to alcohol duty which aim to simplify the current system and reduce administration both for business and HMRC. Key proposals include:
‘major simplification’ by taxing drinks in proportion to their alcohol content;
reduction in the number of main rates from 15 to 6, with common thresholds for each set of bands across product categories, and harmonised rates for drinks at 8.5% ABV or above;
reduced rates for products below 3.5% ABV;
small producer relief to reduce the tax burden on smaller producers of wine, cider, spirits and made-wine below 8.5% ABV; and
a 5% reduction in duty for draught beer and cider sold in pubs.
The Treasury has launched a consultation on proposed changes to alcohol duty which aim to simplify the current system and reduce administration both for business and HMRC. Key proposals include:
‘major simplification’ by taxing drinks in proportion to their alcohol content;
reduction in the number of main rates from 15 to 6, with common thresholds for each set of bands across product categories, and harmonised rates for drinks at 8.5% ABV or above;
reduced rates for products below 3.5% ABV;
small producer relief to reduce the tax burden on smaller producers of wine, cider, spirits and made-wine below 8.5% ABV; and
a 5% reduction in duty for draught beer and cider sold in pubs.
