Every pint in every pub in the UK is set to change price as they’ll be subject to less tax from July 31st, According to HMRC.
In what is the biggest Alcohol Duty reform in 140 years, from August 1st it will come into effect with new rate seeing alcoholic drinks taxed by their abv rather than the four categories (beer, cider, spirit and wine).
The new system is said to be responsive to the new products entering the market as “consumer tastes evolve”, say the HRMC.
Adding that smaller producers, pubs and restaurants will benefit from the reduced rates on qualifying product such as draught beer and cider, the Liverpool Echo reported.
It added that small producers, including pubs and restaurants, will benefit from reduced rates on qualifying products, such as draught beer and cider
Exchequer Secretary to the Treasury Gareth Davies said: “Because we left the EU we can make sure our alcohol duty system works for us. From next month the whole system will be simpler, the duty will reflect the strength of the drink. We will also protect pubs and brewers with our Brexit Pubs Guarantee keeping Draught Duty down, and a new Small Producer Relief.
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“The new system will create six standardised alcohol duty bands across all types of alcoholic products and apply to all individuals and businesses involved in the manufacture, distribution, holding and sale of alcoholic products across the UK.
A Government spokesman said: “As announced at Spring Budget 2023, the government will increase the duty rates under the revised duty structure for alcohol products being introduced from 1 August 2023 in line with the Retail Price Index (RPI). This includes all alcoholic products produced in, or imported into, the UK.
“The government will also increase the value of Draught Relief from 5% to 9.2% for qualifying beer and cider products and from 20% to 23% for qualifying wine, other fermented products (previously made-wine) and spirits. All changes will take effect from 1 August 2023.”
Small businesses that produce alcoholic products with abv less than 8.5% will be eligible for reduced rates.
So if you’re drinking stronger alcoholic products you may have to pay more for the new scheme, but if you’re drinking the lower abv then you should be paying less, according to the revised structure.
There will be reduced rates for draught products with reducing rates of tax on qualifying beer and cider by 9.2%, and by 23% on qualifying wine-based, spirits-based and other fermented products, sold in on-trade premises such as pubs and restaurants.
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