Policy paper

Excise Duties (Miscellaneous Amendments and Revocations) Regulations 2024

Published 4 December 2024

Who is likely to be affected

Excise traders in the UK, specifically those that own excise goods (alcohol, tobacco and energy products) in an excise warehouse and those that store and move excise goods.

Passengers who purchase goods from an export shop and are subsequently unable to travel abroad.

General description of the measure

This measure makes various amendments relating to excise duty and it:

• removes the requirement that revenue traders may only store goods in an excise warehouse for longer than 72 hours if they are an authorised warehousekeeper, a registered owner or they have a duty representative, and makes consequential amendments on that change
• allows a person who purchases goods from an export shop with the intention of exporting the goods to return the goods to the export shop in the event they do not travel
• makes miscellaneous and consequential amendments to UK excise law, by simplifying specific regulations that apply to the holding and movement of excise goods like alcohol, tobacco, and energy products
• aligns the legislation across the UK on the documentation that must accompany goods being moved in duty suspension

Policy objective

The objective of this measure is to improve and simplify the excise legislation as part of modernising and reforming the tax and customs system.

Background to the measure

These Warehousekeepers and Owners of Warehoused Goods Regulations 1999 (WOWGR) changes arise following a review of WOWGR in 2022 which was undertaken by HMRC as part of its programme of excise simplification and modernisation. A targeted informal consultation by HMRC in 2023 found that WOWGR are outdated, create unnecessary burdens and duplications, and are no longer effective in preventing fraud.

The simplification of WOWGR and miscellaneous amendments to UK excise law, will further simplify the legislation and processes which will reduce admin burdens and ensure HMRC, and businesses or passengers have more certainty over how the simplifications operate.

These other excise changes (non WOWGR) have no material impact on HMRC’s processes and systems.

HMRC regularly engage with external stakeholders via the Joint Excise Consultation Group (JECG) which is a forum that comprises trade associations representing alcohol, tobacco and energy products supply chains. This group have been notified of all the changes that are being made.

Detailed proposal

Operative date

These WOWGR measures, Regulations 2, 4(7) to (11), 5, 7 and 8 come into force on 3 March 2025 to give excise businesses plenty of time to prepare.

 All other excise miscellaneous provisions come into force on 23 December 2024.

Current law

The Excise Goods (Holding, Movement and Duty Point) Regulations 2010 set out the general arrangements for the holding and movement of excise goods for the UK. 

The WOWGR is a regulatory tool to identify and register owners of goods in (third party) warehouses. The legislation covering WOWGR includes:

• approval and registration of warehousekeepers
• approval and registration of owners and duty representatives
• duty representatives
• excise duty points and forfeiture

Proposed revisions

The Excise Goods (Holding, Movement and Duty Point) Regulations 2010 (S.I. 2010/593) sets out the general arrangements for the holding and movement of excise goods for the UK. The Excise Goods (Holding, Movement and Duty Point) Regulations 2010 (S.I. 2010/593), together with other UK legislation, implemented the provisions of Council Directive 2008/118/EEC (the Horizontal Excise Directive).

These changes to the relevant provisions of the Excise Goods (Holding, Movement and Duty Point) Regulations 2010 (‘HMDP 2010’) and other UK legislation will simplify the holding and movement of excise goods like alcohol, tobacco, and fuels. It will also amend WOWGR by streamlining current controls by the removal of the 72 hour rule duty point and the removal of registered owners or duty representative requirements.  

The changes to other UK legislation are listed below:

(a) sections 93(1), (2)(a), (db), (e), (fa), (fb) and (fc), (3) and (5), 100G(1) and (4) and 100H(1)(a), (b), (c), (g), (k), (l) and (n) and (2) of the Customs and Excise Management Act 1979.

(b) section 7(1)(b) and (ba) and (1A) of the Tobacco Products Duty Act 1979.

(c) section 1 of the Finance (No. 2) Act 1992.

(d) sections 45(1) and (2) and 48(10) and (11) of the Taxation (Cross-border Trade) Act 2018.

(e) section 88(1)(j) and (k), (2)(c) and (4) of the Finance (No. 2) Act 2023.

A new regulation is being created Excise Duties (Miscellaneous Amendments and Revocations) Regulations 2024; Regulations 2, 4(7) to (11), 5, 7 and 8 come into force on 3 March 2025.

All other provisions come into force on 23 December 2024.

Summary of impacts

Exchequer impact (£ million)

2024 to 2025	2025 to 2026	2026 to 2027	2027 to 2028	2028 to 2029	2029 to 2030
Nil	Nil	Nil	Nil	Nil	Nil

These measures are not expected to have an exchequer impact. 

Economic impact

These measures are not expected to have any significant macroeconomic impacts. 

Impact on individuals, households and families

There is expected to be no impact on individuals as the measures affect only businesses. 

Equalities impacts

It is not anticipated that there will be impact on those in groups sharing protected characteristics.   

Impact on business including civil society organisations

This change is expected to have a negligible impact on businesses who wish to store duty suspended goods in an excise warehouse. Removing Owner of Goods and Duty Representatives will make it easier for new entrants by removing the regulatory burden and one-off costs associated with registering with HMRC. 

One-off cost could include the need for all businesses to familiarise themselves with the change. This will involve communication via HMRC and the industry to customers. One-off savings could include reduced administrative burdens for existing businesses as they will no longer need to check and obtain registrations and update their own registration should any details change and for businesses who are no longer required to register with HMRC to store duty suspended goods in an excise warehouse.

There will, however, be an onus on warehousekeepers to undertake relevant due diligence checks on businesses that wish to store goods in their warehouse, but this should not add any additional burdens as it will be part of the warehousekeepers regular checks of a business or model. 

This measure is expected overall to improve businesses and individuals’ experience of dealing with HMRC as it removes a tax burden. It therefore represents simplification. 

There is expected to be no impact on civil society organisations. 

Operational impact (£ million) (HMRC or other)

HMRC may incur further staff costs in the short term as the policy is implemented but after that will expend less resource in this area. 

Other impacts

Other impacts have been considered and none have been identified. 

Monitoring and evaluation

No evaluation principles apply, but HMRC will continue to monitor evolving risks, and compliance matters in accordance with its Alcohol Fraud Strategy, Oils Fraud Strategy and Tobacco Fraud Strategy.

Further advice

If you have any questions about this change, please contact Wendy Longworth at HMRC, email: wendy.longworth@hmrc.gov.uk.

Declaration

James Murray MP, Exchequer Secretary to the Treasury has read this tax information and impact note and is satisfied that, given the available evidence, it represents a reasonable view of the likely costs, benefits and impacts of the measure.