Purpose of this brief

At Autumn Budget 2024, the government announced the end of the Alcohol Duty Stamp Scheme (the scheme) from 1 May 2025. The scheme requires the stamping of larger retail containers of high strength spirits, wine, and other fermented products.

This brief provides information about what you need to do in connection with the ending of the scheme.

Who needs to read this

You should read this if you’re:

• registered or authorised under the scheme
• a producer or bottler based in the UK or abroad, of spirits, wine or other fermented products destined for the UK market
• an authorised warehousekeeper
• an owner of goods held in an excise warehouse
• importing or exporting spirits, wine or other fermented products
• selling spirits, wine or other fermented products by wholesale or retail in the UK

For Northern Ireland only, you should read this if you’re a:

• registered consignee
• temporary registered consignee
• tax representative

Background

HMRC introduced the scheme as an anti-fraud measure in 2006 as a response to concerns about the evasion of Alcohol Duty on high strength alcoholic products. Since its introduction, the scheme has become a diminishing part of HMRC’s compliance response.

Ending the scheme will remove the administrative tasks and costs linked with the scheme, particularly those incurred by the spirits industry. By removing the scheme’s obligations, the government also hopes to encourage product innovation and the greater adoption of environmentally friendly business practices.

The main changes

The scheme will end on 1 May 2025. Until that date, you must continue to follow all of the scheme’s rules. Detail about how to comply is set out in UK Duty Stamps Scheme (Excise Notice DS5).

From 1 May 2025, you will no longer need to register, obtain, or apply Alcohol Duty stamps (stamps) to retail containers previously covered by the scheme. Registrations and authorisations under the scheme will automatically end, without you needing to take any action.

You will also no longer need to follow the scheme’s rules for removing stamps, or for keeping new records related to stamps from 1 May 2025. However, you must keep existing records for retail containers stamped before the scheme’s end for at least 3 years from the date the record was made.

At this stage, the scheme is not being replaced by any new requirement for on-pack markings. HMRC continues to monitor the need for anti-fraud measures as they relate to alcohol products and the supply chain.

If you’re a business applying integrated label Alcohol Duty stamps

From 1 May 2025, producers will no longer need to integrate stamps into retail container labels. Some producers may need time to change their production processes to remove stamps from label designs. If that is the case, you may continue to apply stamps until your business has made this adjustment. HMRC encourages businesses to do this as soon as practical.

If you’re a business applying free-standing Alcohol Duty stamps

Businesses applying free-standing stamps should stop doing so from 1 May 2025. Stamps which have already been attached to retail containers do not need to be removed.

For the scheme’s ending, you should make a reasonable estimate of the number of free-standing stamps you’re likely to need. You should avoid ordering excess stamps because they will not be required from that date.

If you’re moving retail containers of alcoholic products into duty suspense before 1 May 2025

Alcoholic products that are moved into duty suspense before the scheme’s end will not need to be stamped, provided the duty point for those products does not occur before 1 May 2025. You may hold such product in a duty suspense arrangement before the scheme’s end date, so long as it is not released onto the UK market before then.

HMRC would urge caution where there’s uncertainty as to when product will be released onto the UK market, because the scheme’s rules, including those for sale and supply, remain in force until then.

If you’re an alcohol wholesaler or retailer

From 1 May 2025, both legacy stamped product, and unstamped products may be sold and supplied. To help verify the products are legitimate, you should continue to comply with all of your legal obligations, due diligence, and any requirements of the Alcohol Wholesaler Registration Scheme as they apply to you.

Excise registered businesses must continue to carry out due diligence. A summary of what this means is set out in guidance, Due diligence for excise registered businesses.

All businesses should continue to follow the requirements of the Alcohol Wholesaler Registration Scheme where they apply. Detailed requirements are set out in Excise Notice 2002: Alcohol Wholesaler Registration Scheme. HMRC has an online service to check if an alcohol wholesaler is approved so retail and trade buyers can check whether their suppliers are registered.

Criminal and civil sanctions may apply when you purchase and supply alcohol from an unregistered supplier in breach of the Alcohol Wholesaler Registration Scheme rules.

If you import products to the UK (including Northern Ireland)

From 1 May 2025 you’re no longer required to meet the requirements of the scheme if you’re either a:

• temporary registered consignee
• registered consignee
• tax representative

Alcoholic products entering the UK from the European Union or anywhere else in the world do not need to be stamped.

Those supplying alcoholic products using distance selling arrangements should be aware that stamping prior to the product’s arrival and release from duty suspense arrangements is no longer required from 1 May 2025.

If you export products which are already stamped

From 1 May 2025 you no longer need to follow the rules for removing or obliterating stamps on product for export. If you wish to remove stamps you may do so at your discretion and without notifying HMRC.

This also applies if the exported products are duty paid and you intend to make a drawback claim. However, you must still meet all the other requirements and conditions for drawback as described in Excise duty drawback (Excise Notice 207).

Retail containers which are already stamped when the scheme ends on 1 May 2025

Retail containers already stamped before 1 May 2025 will be unaffected. You may continue to supply them in the same way. You’re not required to obliterate or remove stamps already attached. However, you’re free to remove them without restriction from then.

Whether an alcoholic product is stamped or not will not impact your other legal responsibilities, including due diligence, linked with the supply of those products.

If you wish to remove stamps from retail containers after the scheme ends

From 1 May 2025 there are no rules for how you should remove or obliterate stamps from retail containers already stamped. You will not need to tell HMRC beforehand.

If you hold supplies of unused free-standing stamps after 1 May 2025

Stamps will no longer be required from 1 May 2025, and therefore any unused stamps should be securely destroyed by shredding. If you destroy excess stamps after that date, you do not need to notify HMRC.

Get more information

The reasons and background to this change are explained in:

• End of Alcohol Duty Stamps Scheme
• UK Duty Stamps Scheme (Excise Notice DS5), which applies until 1 May 2025