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Duty Changes 2023

The new Alcohol Duty rates for the UK came into effect on 1st August 2023, and affects wines delivered in the UK from bonded storage after this date.

The changes to the Alcohol Duty structure create a standardised series of tax bands based on alcohol by volume (ABV). This replaced the previous Alcohol Duty system, which consisted of four separate taxes covering beer, cider, spirits, and wine.

Alcohol Duty on still wine was charged at £2.23 per 750ml bottle, and on sparkling wine at £2.86 per 750ml bottle, while fortified wines were charged at £2.98 per 750ml bottle.

From the 1st of August those four categories have become one. Alcohol Duty on a single 750ml bottle in the ABV 11.5% - 14.5% band rose to £2.67, and it is this band which covers the majority of wines.

For wines with a lower alcohol content the rate of Alcohol Duty is lower, and for wines with a higher alcohol content the rate of Alcohol Duty is higher. The changes are on a pro-rata basis, so effectively the higher percentage the wine, the greater the Alcohol Duty.

Here at GVWM we continue to advise on the best course of action for both our current and prospective clients.