Policy paper
Changes to the rates of Alcohol Duty
This tax information and impact note provides details on changes to alcohol duty rates.
Documents
Details
This measure:
- reduces the Alcohol Duty rates on qualifying draught products by 1.7% in cash terms — this will increase the value of the Draught Relief duty differential from 9.2% to 13.9% for qualifying beer and cider products and from 23% to 26.9% for qualifying wine, other fermented products and spirits — this aims to support the hospitality industry by ensuring that an average alcoholic strength pint (4.58% alcohol by volume) will pay 1 pence less in duty
- increases the Alcohol Duty rates by Retail Price Index inflation across all categories of non-draught products. Alongside this increase, the simplified duty rates used for calculating Excise Duty on alcoholic products brought into Great Britain for personal use have also increased
- increases the cash discount provided to small producers for non-draught products and maintains the cash discount provided to small producers for draught products. This increases the relative value of Small Producer Relief
- ends the current temporary wine easement, as planned
These changes take effect from 1 February 2025.