Alcohol duty up 8%
From 1 December 2008 the rates of alcohol excise duty will be increased by 8%. This will affect manufacturers, importers, distributors, retailers, warehouse keepers and consumers of all alcoholic drinks.
On 26 November 2008 this measure was amended to limit the increase in excise duty on spirits, spirits-based Ready-to-Drinks and wine and made wine exceeding 22% abv to 4%.
Baker Tilly analysis
To offset the 2.5% reduction in the VAT rate, alcohol duty will increase on all drinks.
However, the amendment to limit the increase on spirits to 4% came as a surprise to many and was a result of representations from the Scotch whisky industry.
The alcohol duty rates will be as follows:
2008/09 from 1 December 2008
|
Rate per litre of pure alcohol
|
|
| Spirits |
£22.20 |
| Spirits-based Ready to Drinks |
£22.20 |
Wine and made-wine:
Exceeding 22% abv |
£22.20 |
| Rate per hectolitre per cent of alcohol in the beer |
|
| Beer |
£16.15 |
| Rate per hectolitre of product |
|
Still cider and perry:
Exceeding 1.2% - not exceeding 7.5% abv. |
£31.21 |
Still cider and perry:
Exceeding 7.5% - less than 8.5% abv. |
£46.83 |
Sparkling cider and perry:
Exceeding 1.2% - not exceeding 5.5% abv. |
£31.21 |
Sparkling cider and perry:
Exceeding 5.5% - less than 8.5% abv. |
£203.14 |
Wine and made-wine:
Exceeding 1.2% - not exceeding 4% abv. |
£64.65 |
Wine and made-wine:
Exceeding 4% - not exceeding 5.5% abv. |
£88.90 |
Still wine and made-wine:
Exceeding5.5% - not exceeding 15% abv. |
£209.82 |
Wine and made-wine:
Exceeding 15% - not exceeding 22% abv. |
£279.74 |
Sparkling wine and made-wine:
Exceeding 5.5% - less than 8.5% abv. |
£203.14 |
Sparkling wine and made-wine:
8.5% and above - not exceeding 15% abv. |
£268.75 |