BEER4040 - Small brewery beer: Connected (or co-operated, or group) premises

It is important to identify group (or connected) premises to prevent a large business being artificially split into a number of smaller ones who would each be below the alcohol production limit for SPR and therefore entitled to reduced rates of duty.

Whether a person or business is connected is determined in accordance with section 1122 of the Corporation Tax Act 2010.

Producers can be connected by people and business relationships (examples can be found in the SPR business set up guidance and Section 8.3 of Notice 226)

In exceptional circumstances, officers may treat 2 connected persons as if they are not connected for the purposes of Small Producer Relief. For example, where family members are estranged and have no relationship with each other.

Sections 8.7 to 8.9 of Notice 226 also provide further information for cases where:

·        production premises are shared between more than one producer; and

·        how SPR eligibility applies to premises which are part of a group