You will probably be aware that in March the government announced the results of a lengthy consultation on Alcohol Duty. The changes from this review are to come into effect on 1st August this year, and will have a significant impact on how duty is applied to wine and spirits.
Duty will move to a new ABV-based system whereby the amount of duty charged is directly related to the level of alcohol in the product. For wine this will be measured by 0.5% ABV, but the government has allowed for a period of transition until 1st February 2025. In the interim period all wines with an ABV of 11.5% to 14.5% which comprises the great majority of wines in the market, will attract duty at the rate of a 12.5% wine. Anything below or above these thresholds will work to the new system.
At the same time, the government has imposed an unprecedented increase in duty on still and fortified wines, whilst also bringing sparkling wine duty down in line with still wines. This all means that, from 1st August, duty will change as below:
A 75cl bottle of still wine between 11.5% and 14.5% will attract duty of £2.67 per bottle, an increase of 44p (20%)
A 75cl bottle of sparkling wine between 11.5% and 14.5% will attract duty of £2.67 per bottle, a decrease of 19p (-7%).
A 75cl bottle of still wine at 15% will attract duty of £3.21 per bottle, an increase of 98p per bottle (44%)
Spirits duty has increased by 10%
A full list of the impact of the changes can be found below:
For spirits, the relevant rates are:
We shall be passing on the impact of these changes when they come into effect for duty paid deliveries orders placed on or after 1st August and these will be reflected in our Autumn Price List which will be published in September.
Please don’t hesitate to contact your contacts at Thorman Hunt who will be able to advise on specific prices and questions you might have. Alternatively you can email email@example.com