General beer duty rate

Page written by AI. Reviewed internally on May 17, 2024.


The general beer duty rate refers to the standard rate of excise duty applied to the production and sale of beer in the UK.

What is the general beer duty rate?

The general beer duty rate is a tax charged by the government on the production and sale of alcoholic beverages, intended to generate revenue and regulate consumption.

It is calculated based on the volume of beer produced or imported, typically measured in hectolitres (hl), and the alcoholic strength of the beverage. The duty is payable by breweries, importers, or wholesalers before the beer is released for sale to consumers.

The general beer duty rate is an important source of revenue for the government, contributing to public funds used for various purposes, including healthcare, education, and infrastructure development. Changes to the duty rate can have big implications for the brewing industry, consumer prices, and overall consumption patterns.

It’s worth mentioning that the general beer duty rate may vary over time due to legislative changes, economic factors, and government policies aimed at promoting industry growth, addressing public health concerns, or raising additional revenue. Brewers and other stakeholders in the beer industry must monitor these changes closely to understand their impact on business operations and market dynamics.

Example of the general beer duty rate

Let’s say a brewery produces 10,000 hectolitres of beer with an average alcohol content of 5% ABV (alcohol by volume). In the UK, the general beer duty rate might be £20 per hectolitre for beer with an ABV between 1.2% and 7.5%.

So, the brewery’s duty calculation would be: 10,000 hectoliters x £20 = £200,000

Therefore, the brewery would owe £200,000 in beer duty to the government based on the general beer duty rate.

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