The Beer from Small Breweries (Extension of Reduced Rates of Excise Duty) Order 2004

Explanatory Note

(This note is not part of the Order)

This Order, which comes into force on 1st June 2004, amends sections 36C to 36F of the Alcoholic Liquor Duties Act 1979 (c. 4).

Sections 36A to 36H apply reduced rates of excise duty for beer from small breweries producing up to 30,000 hectolitres of beer a year. Section 36B is a definitions section. Section 36C defines what is small-brewery beer in the case of a singleton brewery and section 36D sets the rate of duty for small-brewery beer from singleton breweries. Section 36E defines what is small-brewery beer when produced by a co-operated brewery while section 36F sets the rate of duty for small-brewery beer from a co-operated brewery.

The rate of duty for small-brewery beer produced by breweries with an annual production of more than 5,000 hectolitres and up to 30,000 hectolitres, is calculated using a formula. The formula is specified in section 36D for singleton breweries and in section 36F for co-operated breweries.

This Order amends sections 36C to 36F to apply reduced rates of excise duty for beer from small breweries producing up to 60,000 hectolitres of beer a year. For breweries producing more than 30,000 hectolitres and up to 60,000 hectolitres, the reduced rate is applied on a tapered basis and is calculated using a new formula. The new formula is specified in section 36D for singleton breweries and in section 36F for co-operated breweries.

A full regulatory impact assessment has not been produced for this instrument as it has no impact on the costs of business, charities or voluntary bodies.