Beer: Excise Duties
The question
To ask the Chancellor of the Exchequer, what recent discussions she has had with HMRC on the potential impact of (a) the administration of and (b) compliance with the beer duty system on small producers.
Answered by Dan Tomlinson
A new duty structure for alcoholic products was introduced in August 2023. This included a new Small Producer Relief (SPR) which replaced and extended the previous Small Brewers Relief. SPR provides vital support to smaller producers making 4500 hectolitres or less of alcohol per year by providing reduced rates of duty on all alcoholic products below 8.5 per cent ABV.
HMRC plans to evaluate the impact of the new alcohol duty rates and structures, including SPR, three years after the changes took effect on 1 August 2023. Three years allows time for HMRC to gather a broad range of data to properly evaluate the impacts. The Government welcomes evidence from industry on the impact of the changes so far.
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