1.This section provides for a reduction in the rates of excise duty charged on spirits, still cider and perry, sparkling cider and perry not exceeding 5.5% and wine and made-wine of a strength exceeding 22%. It also provides for a reduction in the rate of general beer duty and an increase in the rate of high strength beer duty. These changes will have effect on and after 23 March 2015.
2.Subsection (2) substitutes a new rate of excise duty for spirits in section 5 of the Alcoholic Liquor Duties Act 1979 (ALDA). The previous rate of £28.22 is replaced by £27.66.
3.Subsection (3)(a) substitutes a new rate of excise duty for lower strength beer in section 36(1AA)(za) of ALDA. (This is beer of a strength exceeding 1.2% but not exceeding 2.8%). The previous rate of £8.62 is replaced by £8.10.
4.Subsection (3)(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% and is not small brewery beer). The previous rate of £18.74 is replaced by £18.37.
5.Subsection (4) 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%). The previous rate of £5.29 is replaced by £5.48.
6.Subsection (5)(a) substitutes a new rate of excise duty for cider of a strength exceeding 7.5% which is not sparkling cider in section 62(1A)(b) of ALDA. The previous rate of £59.52 is replaced by £58.75.
7.Subsection (5)(b) substitutes a new rate of excise duty for other cider in section 62(1A)(c) of ALDA. The previous rate of £39.66 is replaced by £38.87.
8.Subsection (6) substitutes a new rate of duty for wine and made-wine of a strength exceeding 22% in Part 2 of the table in Schedule 1 to ALDA. The previous rate of £28.22 is replaced by £27.66.
9.Budget 2015 announced a reduction in the rates of excise duty on the following alcoholic drinks by 2%:
spirits;
wine and made-wine exceeding 22%;
beer between 2.8% and 7.5%;
sparkling cider and perry not exceeding 5.5%; and
still cider and perry not exceeding 7.5%.
10.There will also be a reduction in the rates of excise duty on lower strength beer by 6% and still cider and perry exceeding 7.5% by 1.3%. The duty rate for high strength beer will increase by 3.7%, which will result in the total duty rate for high strength beer being reduced by 0.75%.
11.These changes will take effect on and after 23 March 2015.
12.The rates of duty on wine and made-wine not exceeding 22% and sparkling cider and perry exceeding 5.5% will be frozen in 2015-16; this does not require legislation.