Ask the Collective
The questions independent drinks founders ask most — answered. Distilled from years of community knowledge so the good stuff never disappears in the feed again.
What are the current alcohol duty rates and when do regulatory changes take effect?
Members confirmed that new alcohol duty rates came into effect on **August 1st**. The official rates and details are published by the UK government and can be found at the government's dedicated publication page on alcohol duty rate changes. Members recommend checking the official gov.uk source directly for the most current and authoritative information on duty rates applicable to your product category.
What are the key changes to alcohol duty rates under the new budget, and how do different spirit categories and ABV levels affect duty liability?
The new budget restructures alcohol duty around five bands based primarily on alcohol strength (ABV), with the same duty rate per litre of pure alcohol applied across all product types within each band—with limited exceptions. **Structure and key features:** - Duty is levied per litre of pure alcohol, standardised within each of the five bands - The 3.5–8.4% ABV band applies the same rate for wine, made-wine and spirits, with a slightly reduced rate for beer and a much reduced rate for "plain" cider (fruit ciders remain taxed as made-wine) - Spirits at standard spirits strength (typically 40% ABV and above, e.g. whisky) fall into the highest duty band and will face the steepest tax - Lower-strength products (below 8.5% ABV) are treated equivalently regardless of whether they are wine, made-wine, beer, cider or spirits **Winners and losers:** - **Sparkling wine** and lower-strength products benefit from reduced rates - **High-strength table wines** will see increased duty - **RTDs and spirits-based drinks below 8.5% ABV** qualify for "craft" producer reduced rates if produced by eligible small producers - **Craft spirits producers at full strength** are notably excluded from reduced-rate eligibility, despite the artisan sector's comparable claims to support **Industry context:** - The Scotch Whisky Association has already flagged the changes as negative for the sector - Some producers of fortified made-wines and spirits-based flavoured drinks may switch to spirits classification, as ethyl alcohol offers cost advantages over fermented alcohol as a base ingredient - This represents a shift from the "cooler" regime (1988–2002), which previously applied flat duty bands for lower-strength products across all categories **Caveat:** The duty structure lacks explicit justification for excluding full-strength craft spirits from reduced-rate support.