Section 76: Rates of Alcoholic Liquor Duties
Summary
1.This section provides for a reduction in the rates of excise duty on general beer duty beer. It also provides for increases in the rates of excise duty charged on wine and made-wine not exceeding 22 per cent and sparkling cider of a strength exceeding 5.5 per cent and high strength beer duty. These changes will have effect on and after 24 March 2014.
Details of the Section
2.Subsection (2)(a) substitutes a new rate of excise duty for lower strength beer in section 36(1AA)(za) of the Alcoholic Liquor Duties Act 1979 (ALDA) (this is beer of a strength exceeding 1.2 per cent but not exceeding 2.8 per cent). The previous rate of £9.17 is replaced by £8.62.
3.Subsection (2)(b) substitutes a new standard rate of excise duty for beer in section 36(1AA)(a) of ALDA (this is beer of a strength which exceeds 2.8 per cent and is not small brewery beer). The previous rate of £19.12 is replaced by £18.74.
4.Subsection (3) substitutes a new rate of excise duty for high strength beer in section 37(4) of ALDA (this is beer of a strength which exceeds 7.5 per cent). The previous rate of £5.09 is replaced by £5.29.
5.Subsection (4) substitutes a new rate of excise duty for sparkling cider of a strength exceeding 5.5 per cent in section 62(1A)(a) of ALDA. The previous rate of £258.23 is replaced by £264.61.
6.Subsection (5) substitutes new rates of excise duty for wine and made-wine in Part 1 of the table in Schedule 1 to ALDA. The new rates are as follows:
Wine or made-wine of a strength not exceeding 4 per cent: £84.21.
Wine or made-wine of a strength exceeding 4 per cent but not exceeding 5.5 per cent: £115.80.
Wine or made-wine of a strength exceeding 5.5 per cent but not exceeding 15 per cent and not being sparkling: £273.31.
Sparkling wine or sparkling made-wine of a strength exceeding 5.5 per cent but less than 8.5 per cent: £264.61.
Sparkling wine or sparkling made-wine of a strength of at least 8.5 per cent or more, but not exceeding 15 per cent: £350.07.
Wine or made-wine of a strength exceeding 15 per cent but not exceeding 22 per cent: £364.37.
Background Note
7.Budget 2014 announced a reduction in the rates of excise duty on beer by 6 per cent for lower strength beer and 2 per cent for the standard rate of beer duty. The duty rate for high strength beer duty will increase by 3.9 per cent, which will result in the total duty rate for high strength beer being reduced by 0.75 per cent. The rates of duty on spirits and other drinks of a strength exceeding 22 per cent, still cider and perry and sparkling cider and perry of a strength of 5.5 per cent or less will be frozen in 2014-15; this does not require legislation. This section also increases the excise duty on wine and made-wine by the rate of inflation (based on the retail price index).
