The Beer (Amendment) Regulations 2011

Amendment of the Beer Regulations 1993

2.—(1) Amend the Beer Regulations 1993(1) as follows.

(2) In regulation 4 (interpretation) for the definition of “duty” substitute—

““duty” means any duty of excise charged on beer by section 36(1) of the Act (general beer duty) or section 37(1) of the Act (high strength beer duty)(2);”.

(3) In regulation 8 (when the production of beer begins and when it is completed)—

(a) at the beginning of paragraph (2) for “For” substitute “Except where paragraph (4) applies, for”;

(b) in paragraph (2) for “(the charge of excise duty)” substitute “(general beer duty), section 37 of the Act (high strength beer duty)”; and

(c) after paragraph (3) insert—

“(4) Where before the duty point two or more beers are mixed (in this paragraph referred to as “the constituent beers”) and one or more of the constituent beers is of a strength exceeding 7.5 per cent—

(a) the time at which production of the beer resulting from that mixture is completed is the time when mixing is completed; and

(b) the constituent beers are relieved of duty.”.

(4) For paragraph (4) of regulation 22 (mixing)(3) substitute—

“(4) Paragraph (5) applies where—

(a) beer to which any duty suspension arrangements apply is mixed with any beer that would, had the duty been charged immediately before the time of mixing, have been charged with a different rate of general beer duty; or

(b) beer A is mixed with beer B and—

(i) beer A is beer to which any duty suspension arrangements apply and which would, had the duty been charged immediately before the time of mixing, have been charged with a rate of duty given by section 36D(4) or section 36F(7) of the Act(4); and

(ii) beer B is beer to which any duty suspension arrangements apply and which would, had the duty been charged immediately before the time of mixing, have been charged with the rate of duty specified in section 36(1AA)(za) of the Act(5).

(5) Where this paragraph applies—

(a) if the strength of the resulting mixture exceeds 1.2 per cent but does not exceed 2.8 per cent, the rate at which general beer duty is charged on that mixture is the rate specified in section 36(1AA)(za) of the Act; and

(b) in all other cases, the rate at which general beer duty is charged on the resulting mixture is the rate specified in section 36(1AA)(a)(6) of the Act.”.

(1)

S.I. 1993/1228, amended by S.I. 1995/3059, S.I. 2000/3213, S.I. 2002/1265, S.I. 2002/2692, S.I. 2006/1058, S.I. 2008/1885 and S.I. 2010/593.

(2)

Regulation 4 of S.I. 1993/1228 provides that in those Regulations “the Act” means the Alcoholic Liquor Duties Act 1979. Section 36 of that Act was amended by the Finance Act 2011, section 14 and Schedule 1, paragraph 4. Section 37 of the Alcoholic Liquor Duties Act 1979 was repealed by the Finance Act 1991, Schedule 19, Part II. The Finance Act 2011, Schedule 1, paragraph 1 inserted a new section 37, which provides for a charge of excise duty on high strength beer which is imported into or produced in the United Kingdom on or after 1st October 2011. Section 37(2) defines “high strength beer” as “beer which is of a strength exceeding 7.5 per cent”. Section 2(1) of the Alcoholic Liquor Duties Act 1979 gives the meaning of “strength” as, in relation to beer, its alcoholic strength computed in accordance with that section, the ratio of the volume of the alcohol contained in the beer to the volume of the beer (inclusive of the alcohol contained in it) being expressed as a percentage.

(3)

Regulation 22(4) was inserted by S.I. 2002/1265, regulation 2(3) and amended by S.I. 2006/1058, regulation 2(3).

(4)

Sections 36D and 36F were inserted by the Finance Act 2002 (c. 23), Schedule 1, paragraph 2. Section 36D was amended by the Finance Act 2011, Schedule 1, paragraph 6 and section 36F was amended by paragraph 7 of that Schedule. Section 36D(4) gives the lowest rate of general beer duty for small brewery beer from singleton breweries and section 36F(7) gives the lowest rate of general beer duty for small brewery beer from co-operated breweries, in each case 50% of the standard rate of general beer duty.

(5)

Section 36(1AA)(za) was inserted by the Finance Act 2011, section 14 and provides for a reduced rate of general beer duty for lower strength beer, that is beer of a strength exceeding 1.2 per cent but not exceeding 2.8 per cent.

(6)

Section 36(1AA)(a) provides the standard rate for general beer duty (paragraphs (b) and (c) of that subsection provide for reduced rates for small brewery beer). Subsection (1AA) was inserted into section 36 by the Finance Act 2002, Schedule 1, paragraph 1 and was amended by the Finance Act 2011, section 14 and Schedule 1, paragraph 4.