BEER4030 - Small brewery beer: Calculation of reduced rates
Once it is established that a producer is eligible to pay a reduced rate of duty under SPR, the actual rate of duty that will apply in the current year needs to be calculated.
The reduced rate under DR is fixed, and is found in Schedule 8 of Finance (No.2) Act 2023.
SPR operates on a sliding scale – so the amount of discount available to each producer will differ, depending on their annual production. By subtracting their individual discount from the standard rate of duty for a product of that type (e.g. beer, cider, wine) and ABV, the producer will be able to work out the actual rate of duty which applies to their products.
Examples of these calculations can be found in paragraph 8.1.1 of Notice 226 and the working out SPR duty guidance.
There is also an online calculator to assist producers in working out their discount.