Ask the Collective

What are the new UK alcohol duty bands, rates, and effective implementation dates under the duty reform?

The UK government has radically restructured alcohol duty to tax all products in proportion to their alcohol content. The system moves from 15 duty bands to 6 standardised bands across all product categories. **New duty bands:** - 1.2–3.4% ABV (reduced rate to encourage low-strength innovation) - 3.5–8.4% ABV - 8.5–22% ABV - Above 22% ABV Above 8.5% ABV, all products (beer, wine, cider, spirits, etc.) pay the same rate of duty based on alcohol content, removing category-specific advantages. **Key reliefs and incentives:** - **Reduced rates for products below 3.5% ABV** — designed to encourage manufacturers to develop lower-alcohol options - **Small producer relief** — applies to smaller producers of wine, cider, spirits, and made-wine below 8.5% ABV - **Draft relief** — duty rates on draft beer and cider cut by 5% to support pubs and responsible drinking **Implementation:** Effective from February 2022 (note: one member initially stated 2023, but the corrections confirm 2022). The government consulted on detailed regulations with a closure date of 30 January 2022. **Expected market impact:** Members noted that spirits duty will increase, while ciders, sparkling wines, and beer will generally see lower duty. English sparkling wine is expected to benefit significantly. Members warned to consider price positioning ahead of implementation, as regulations may shift during the consultation period. **Northern Ireland caveat:** Northern Ireland may face different duty bands or rates depending on EU negotiations during the consultation period, so the framework may not apply uniformly across the UK.