(1)After section 55 of ALDA 1979 insert—
(1)This section applies if—
(a)wine or made-wine is imported into the United Kingdom or produced in the United Kingdom for sale,
(b)excise duty is chargeable on the wine or made-wine as a result of section 54 or 55,
(c)after the excise duty point in relation to that charge, a person mixes or otherwise adds, at any place in the United Kingdom, water or any other substance to the wine or made-wine in a case where what results (“the new product”) is intended for sale, and
(d)if the addition had taken place immediately before that duty point, the amount of the excise duty would have been greater than the amount actually payable.
(2)The addition attracts a penalty under section 9 of the Finance Act 1994 (civil penalties), and the new product is liable to forfeiture.
(3)This section has effect, despite section 8 of the Isle of Man Act 1979, as if a removal of wine or made-wine to the United Kingdom from the Isle of Man constituted its importation into the United Kingdom (and references to the charge to excise duty as a result of section 54 or 55 and to the excise duty point are to be read accordingly).”
(2)The amendment made by this section has effect in relation to any addition of water or any other substance on or after 1 April 2020.