ICAEW.com works better with JavaScript enabled.

TAX NEWS

Growth Plan 2022: alcohol duty reform and rates freeze

Article

Published: 27 Sep 2022 Update History

Government publishes response to alcohol duty consultation.
17 October update

On 17 October, the new Chancellor of The Exchequer, Jeremy Hunt, brought forward a number of measures from the late October Medium-Term Fiscal Plan. These reversed most of the changes that had been announced by his predecessor, Kwasi Kwarteng, on 23 September.

As part of its plan for growth, the government has published its response to the alcohol duty consultation launched in October 2021, along with draft legislation and explanatory notes.

Under the proposed changes, alcoholic beverages will generally be taxed based on the amount of alcohol they contain. Previously, different types of alcohol were taxed at different rates.

The reforms are intended to improve the current system by making it simpler, more economically rational and less administratively burdensome on businesses. They will take effect from 1 August 2023.

Draught relief will mean lower duty rates for certain draught products sold ‘on-trade’, in pubs, bars and restaurants. Small producer relief will extend the relief currently offered to small brewers to small producers of lower-strength beers, ciders, wines and spirits.

To provide additional support to the sector and help consumers with the cost of living, the government is also freezing alcohol duty rates from 1 February 2023. These rates had previously been set to rise in line with the retail price index.

 
Tax Faculty

This guidance is created by the Tax Faculty, recognised internationally as a leading authority and source of expertise on taxation. The Faculty is the voice of tax for ICAEW, responsible for all submissions to the tax authorities. Join the Faculty for expert guidance and support enabling you to provide the best advice on tax to your clients or business.

More support on tax

ICAEW's Tax Faculty provides technical guidance and practical support on tax practice and policy. You can sign up to the Tax Faculty's free enewsletter (TAXwire) which provides weekly updates on developments in tax.

Sign up for TAXwireJoin the Tax Faculty

More from the Tax Faculty

Latest news
Making tax digital image
TAXwire

Stay up to date with the latest developments in tax by signing up to the Tax Faculty's weekly e-newsletter

Practical guidance
Cover
TAXline

Comprehensive support for Tax practitioners each month from the Tax Faculty and expert contributors.

Technical support
Tax Faculty image
Webinars

Expert advice from the Tax Faculty's technical managers on all the developments in tax policy and practice.

Open AddCPD icon

Add Verified CPD Activity

Introducing AddCPD, a new way to record your CPD activities!

Log in to start using the AddCPD tool. Available only to ICAEW members.

Add this page to your CPD activity

Step 1 of 3
Download recorded
Download not recorded

Please download the related document if you wish to add this activity to your record

What time are you claiming for this activity?
Mandatory fields

Add this page to your CPD activity

Step 2 of 3
Mandatory field

Add activity to my record

Step 3 of 3
Mandatory field

Activity added

An error has occurred
Please try again

If the problem persists please contact our helpline on +44 (0)1908 248 250