Alcohol Duty increase – 1st February

The alcohol duty system will undergo changes in February 2025, introducing a new tax structure based on alcohol strength and Alcohol Duty rates for all non-draught products will increase in line with Retail Price Index inflation.

The duty rates used for calculating excise duty on alcoholic products brought into Great Britain (England, Scotland, and Wales) for personal use will also increase.

The UK Government will raise the cash discount provided to small producers for non-draught products, while maintaining the existing discount for draught products. Small Producer Relief offers lower Alcohol Duty rates to small producers making less than 4,500 hectolitres of pure alcohol per year, provided their products are below 8.5% ABV, not produced under licence, and made on small producer premises.

Alcohol Duty rates last increased, in line with Retail Price Index, on 1 August 2023 following an announcement at Spring Budget 2023. At Autumn Statement 2023, Alcohol Duty rates were frozen until 1 August 2024. This freeze was extended until 1 February 2025 at Spring Budget 2024.

A new banding system for wine-based products between 11.5%-14.5% abv will also come into force, with products being taxed according to their strength in 0.1% abv increments.

All changes will take effect on 1 February 2025.

You can read more about these changes on the UK Government website here.