Measure
As previously announced, the government will legislate to make changes to the duty structure for alcoholic products, creating standardised tax bands based on alcohol by volume.
Additionally, the government will also introduce two new reliefs and transitional arrangements for certain wine products.
HMRC will also take forward plans to harmonise the approval, return and payment processes for domestic producers of alcoholic products with the introduction of the new digital system.
Producers, distributors, importers and/or consumers of beer, wine, spirits and cider.
The two new reliefs for certain wine products will take effect from 1 August 2023.
Harmonisation of processes for domestic producers of alcoholic products are scheduled to take effect from late 2024.
The first part of this measure was anticipated following its initial announcement in the 2021 Autumn Statement and subsequent delayed implementation announced in the 2022 Autumn Statement. The government will now legislate in Spring Finance Bill 2023 to make its proposed changes.
Following consultation, the second part of this measure is a follow up by the government on its policy relating to the implementation of the ‘Draught Relief’ and the ‘Small Producer Relief’, aimed at extending the ‘Small Brewers Relief’.
Further information on the introduction of the new digital system referenced within the measure is yet to be released.