BEER2010 - Registration: Introduction

On 1 August 2023 Beer Duty was replaced with a standard Alcohol Duty that applies to all alcoholic products above 1.2% ABV.

Alcohol Duty is charged depending on the ABV of the finished product. Higher ABVs attract higher rates of duty. Products are grouped in to ABV ‘bands’ as below:

  • greater than 1.2% ABV but less than 3.5% ABV
  • at least 3.5% ABV but less than 8.5% ABV
  • at least 8.5% ABV but not exceeding 22% ABV
  • exceeding 22% ABV

The current standard rates of Alcohol Duty can be found in Schedule 7 of the Finance (No.2) Act 2023.

Brewers and packagers of beer may produce, hold and move beer in duty suspension between registered brewery and packaging premises and excise warehouses approved to receive beer. In addition, registered brewers and packagers may import beer in excise duty suspension from elsewhere (using a registered consignor and EMCS from place of importation to registered premises) and export directly from registered premises.

Information on who must apply to be registered, when to register and how to register can be found in sections 3, 4 and 5 of Notice 226 Beer Duty.

The registration of a brewer or packager’s premises by HMRC makes them a ‘tax warehouse’ without the need for a separate approval. ‘Tax warehouse’ describes any premises approved for the production, holding and movement of excise goods.

Legislation

The sections of ALDA that relate to the registration of producers and packagers of beer (registration to hold beer in duty suspense) are sections 47 and 41A. These sections continue to have effect despite the repeal of ALDA, under the Savings Provisions contained in Section 3 of The Finance (No. 2) Act 2023, Part 2 (Alcohol Duty) (Appointed Day, Savings, Consequential Amendments and Transitional Provisions) Regulations 2023.

The regulations relating to registration of producers of beer are contained in Part II of the Beer Regulations 1993, regulations 5, 6 and 7 and those relating to registration for duty suspension in Part IV, regulations 9, 10 and 11.

To note: A brewer must also gain approval for the Alcohol Wholesaler Registration Scheme (AWRS) if they sell duty paid alcohol to another business. It is the responsibility of any business who purchases alcohol for onward sale or supply to check that the wholesaler they purchase from has been approved by HMRC. Therefore, any business purchasing beer from a brewer should check that the brewer has been approved as an alcohol wholesaler under AWRS. Details of approval and AWRS procedures can be found in the AWRS guidance and Notice 2002: Alcohol Wholesaler Registration Scheme.