Open consultation

Strengthening the Soft Drinks Industry Levy

From:: HM Revenue & Customs and HM Treasury
Published: 28 April 2025

Summary

HMRC and HM Treasury are seeking views on proposed changes to the Soft Drinks Industry Levy (SDIL).

This consultation closes at
11:59pm on 21 July 2025

Consultation description

Following the recent SDIL review, this consultation sets out proposals to build on the SDIL’s success in incentivising soft drinks producers to reduce sugar content.

These proposals are:

to reduce the minimum sugar content at which the SDIL applies to qualifying drinks from 5g to 4g. The SDIL standard rate would apply from 4g to 7.9g total sugar per 100ml, as opposed to 5g to 7.9g total sugar per 100ml currently
to remove the exemption for milk-based drinks whilst introducing a ‘lactose allowance’ to account for the natural sugars in the milk component of these drinks
to remove the exemption for milk substitute drinks with ‘added sugars’ beyond those sugars derived from the principal ingredient, such as oats or rice

The government welcomes your views on these proposals as part of this consultation and your feedback will inform decisions by HM Treasury ministers.

Documents