SPIR7030 - Calculation of reduced rates

The amount of discount producers are eligible for will depend on the product type; if the product is in draught containers and how many hectolitres of pure alcohol are produced annually.  

To work out annual alcohol production, producers need to know how much alcohol is in the products they make. This can be done by multiplying a product’s volume by its ABV. Annual alcohol production is given in hectolitres of alcohol.  

Products that were spoiled, thrown away or produced in the process of making another alcoholic product (e.g., wort when making beer) does not need to be included in the annual production amount. 

Alcohol contained in alcoholic products not eligible for SPR rates, e.g., alcoholic products above 8.5% ABV must be included in the total alcohol production figures. 

How to calculate the reduced rates including an example can be found in the working out SPR duty guidance. 

Where premises are only used for part of the year (including premises that begin to be used part way through a production year), the alcohol production amount (or estimated amount) is worked out by –

     dividing the alcohol production amount (or estimated amount) by the number of relevant days of the production year, and 

     multiplying the number above by the number of days in the production year. 

There is also an online calculator, to assist producers in determining their discount rates.