DFS3050 - Law, Policy and Application: Assessments and penalties

Remission of duty in respect of spirits used for medical, scientific purposes, art or manufacture

Law

If a person fails to comply with a condition in respect of an authorisation, the failure attracts a penalty under section 9 of FA 1994 section 78(6) Finance (No.2) Act 2023

(7) Subsection (8) applies if—

(a)the spirits are delivered to the person mentioned in subsection (3), and

(b)the spirits are used otherwise than for the purpose in respect of which the authorisation was given.

(8)The Commissioners—

(a)may assess as being alcohol duty due from the person an amount equal to the alcohol duty that would have been charged on the spirits if, at the time of delivery, no authorisation under this section had been given, and

(b)must notify that person or the person’s representative of the assessment. - Finance (No.2) Act 2023 s78

Policy and Application

Civil penalties can be imposed for any contravention to s78 Finance (No. 2) Act 2023 – see pages DFS3020 and DFS3040.

In cases where there is no satisfactory audit trail and the trader cannot prove to your satisfaction that the spirits used were used for an approved purpose, the duty on the spirits becomes due. You can raise an assessment for the amount of duty due on the spirits.

The assessment can be issued in addition to the civil penalty.