Cider: Excise Duties
The question
To ask the Chancellor of the Exchequer, how many and what percentage of small cider producers produce less than five hectolitres of pure alcohol and are exempt from alcohol duty payments.
Answered by Dan Tomlinson
Alcohol duty on all products collectively raises over £12bn a year, helping to fund vital public services as well as reduce harmful drinking.
The 2023 alcohol duty reforms brought much greater consistency of treatment between different types of alcohol. The reforms also increased duty on cider above 4.5% ABV, particularly targeting high-strength white ciders that have been linked to harmful drinking.
HMRC plans to evaluate the impact of these reforms three years after the changes took effect on 1 August 2023, and the Government welcomes evidence from industry on the impact of the changes so far.
HMRC does not collect data on cidermakers producing less than 5 hectolitres of pure alcohol in a year. This is because, as per Section 5.2 of the Alcoholic products technical guide, producers are not required to submit a return if they produced 5 hectolitres or less of alcohol in the previous year and have estimated that they will produce 5 hectolitres or less of alcohol in the current year, across all premises. More information on the Alcoholic products technical guide can be found here:
Alcoholic products technical guide - Section 5 — returns and payments - Guidance - GOV.UK
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