Finance Act 2017

Introductory

25 Soft drinks industry levy

(1) A tax called “soft drinks industry levy” is to be charged in accordance with this Part.

(2) The Commissioners are responsible for the collection and management of soft drinks industry levy.

26 “Soft drink” and “package”

(1) “Soft drink” means—

(a) a beverage of an alcoholic strength not exceeding 1.2%;

(b) a liquid which, when prepared in a specified manner, constitutes a beverage within paragraph (a).

(2) A liquid is prepared in a specified manner if it is—

(a) diluted with water,

(b) combined with crushed ice, or processed so as to create crushed ice,

(c) combined with carbon dioxide, or

(d) prepared by way of a process that involves any combination of the processes mentioned in paragraphs (a) to (c).

(3) A person “packages” a soft drink if the person cans, bottles or otherwise packages the soft drink in a form in which—

(a) in the case of a soft drink within subsection (1)(a), it is suitable to be consumed without further preparation, and

(b) in the case of a soft drink within subsection (1)(b), it is suitable to be consumed when prepared in a specified manner (and without any other preparation),

and “packaged” is to be construed accordingly.

27 Meaning of “prepared drink”

(1) In this Part a reference to “prepared drink” is a reference to—

(a) a soft drink within subsection (1)(a) of section 26;

(b) a beverage that would result from preparing a liquid within subsection (1)(b) of that section—

(i) in a specified manner (see section 26(2)), and

(ii) in accordance with the relevant dilution ratio.

(2) The “relevant dilution ratio” means—

(a) the dilution ratio stated on, or calculated by reference to information stated on, the packaging of the soft drink;

(b) where subsection (3) or (4) applies, the dilution ratio determined by the Commissioners.

(3) This subsection applies where the packaging of the soft drink states neither the dilution ratio nor information by reference to which the dilution ratio can be calculated.

(4) This subsection applies where—

(a) the dilution ratio, or information by reference to which the dilution ratio can be calculated, is stated on the packaging of the soft drink, and

(b) it is reasonable to assume that the main purpose, or one of the main purposes, of stating that particular dilution ratio or information is avoiding or reducing liability for soft drinks industry levy.

(5) The Commissioners may by or under regulations make provision about the criteria for—

(a) determining a dilution ratio for the purposes of subsection (2)(b);

(b) determining whether the main purpose, or one of the main purposes, of stating a particular dilution ratio or information is avoiding or reducing liability for soft drinks industry levy.