BEER4010 - Small Producer Relief and Draught Relief: Introduction and Law

Small Producer Relief

Small producer relief (SPR) extended and replaced small brewers’ relief (SBR) on 1 August 2023 as part of the new alcohol duty system. Small producers of alcoholic products that meet the qualifying criteria will be able to pay a reduced rate of Alcohol Duty on qualifying products.

Information on the transition from SBR to SPR can be found in section 8.1 of Notice 226.

Part 2, Chapter 3 of The Finance (No.2) Act 2023 and Part 3, sections 10-14 of The Alcoholic Products (Excise Duty) Regulations 2023 contain the legislation for SPR.

Draught Relief

Draught relief was introduced on 1 August 2023 and allows producers to pay a reduced rate of duty on products packaged in qualifying draught containers. This reduced rate is used in place of the standard rate, if the producer also qualifies for SPR then they should subtract their SPR discount from the draught rate for qualifying products.

Further information on Draught Relief and the duty rates for draught products can be found here.

The law for Draught Relief is found in Section 50 to 53 of the Finance (No.2) Act 2023.