Finance (No. 2) Act 2023 (c. 30)

Part 2 U.K. Alcohol Duty

Chapter 5 U.K. Regulated activities and approvals

Prospective

82 Approval requirement: producers U.K.

(1) A person may not produce alcoholic products on any premises unless—

(a) the production on those premises is in accordance with an approval given under this section by the Commissioners to the person, or

(b) the person is exempt from the approval requirement under section 84 or 85.

(2) The Commissioners may approve a person under this section only if they are satisfied that the person is a fit and proper person to produce alcoholic products.

(3) An approval under this section may authorise the approved person to hold alcoholic products (including alcoholic products produced by another person in, or imported into, the United Kingdom) on certain premises without payment of alcohol duty.

(4) A person may not carry out other activities on those premises in relation to those alcoholic products, without payment of alcohol duty, except in accordance with an approval under this section.

(5) The reference in subsection (4) to “activities” includes, in particular, packaging and processing, or carrying out other operations on or in relation to, the alcoholic products.

Commencement Information

I1 S. 82 not in force at Royal Assent, see s. 120(2)

83 Supplementary provision about approvals U.K.

(1) An approval under section 82 may be given to a person—

(a) in respect of—

(i) more than one category of alcoholic product;

(ii) more than one set of premises;

(b) for such period as the Commissioners think fit.

(2) An approval is subject to the conditions or restrictions (if any)—

(a) specified by the Commissioners in a notice published by them;

(b) specified by or under regulations made by them;

(c) imposed by them in a particular case.

(3) The Commissioners may, at any time, revoke or vary the terms of an approval.

(4) An application for approval must be in the form and manner, and contain the information, specified by or under regulations made by the Commissioners.

Commencement Information

I2 S. 83 in force at Royal Assent for specified purposes, see s. 120(1)(b)

Prospective

84 Exemption: production for personal consumption U.K.

For the purposes of section 82(1)(b), a person is exempt from the approval requirement if—

(a) the person produces alcoholic products only for the person’s own domestic use, and

(b) the alcoholic products are not spirits.

Commencement Information

I3 S. 84 not in force at Royal Assent, see s. 120(2)

Prospective

85 Exemption: research and experiments U.K.

For the purposes of section 82(1)(b), a person is exempt from the approval requirement if—

(a) the person produces alcoholic products only for the purposes of research into, or experiments in, the production of alcoholic products, and

(b) the person complies with, and the alcoholic products are produced in accordance with, the requirements specified—

(i) by the Commissioners in a notice published by them, or

(ii) by or under regulations made by the Commissioners.

Commencement Information

I4 S. 85 not in force at Royal Assent, see s. 120(2)

86 Mixing alcoholic products U.K.

(1) A person may not mix two or more alcoholic products unless one of the following exemptions applies.

(2) The first exemption applies if the products are mixed—

(a) either—

(i) in accordance with an approval under section 82, or

(ii) in an excise warehouse, and

(b) the mixing takes place before the excise duty point.

(3) The second exemption applies if all of the alcoholic products being mixed—

(a) fall within the same paragraph of section 44(1), and

(b) are of the same alcoholic strength.

(4) The third exemption applies if—

(a) the alcohol duty on each of the alcoholic products being mixed has been paid, and

(b) that amount is equal to or exceeds the amount of alcohol duty that would (if the mixing had taken place before the excise duty point) have been chargeable on the resulting mix.

(5) The fourth exemption applies if—

(a) the alcohol duty on each of the alcoholic products being mixed has been paid,

(b) the resulting mix is intended for consumption on the premises on which the mixing takes place, and

(c) the method of mixing is of a description specified in a notice published by the Commissioners.

Modifications etc. (not altering text)

C1 S. 86(2)(a)(i) modified (31.7.2023) by The Finance (No. 2) Act 2023, Part 2 (Alcohol Duty) (Appointed Day, Savings, Consequential Amendments and Transitional Provisions) Regulations 2023 (S.I. 2023/884), reg. 6

Commencement Information

I5 S. 86 not in force at Royal Assent, see s. 120(2)

I6 S. 86 in force at 1.8.2023 by S.I. 2023/884, reg. 2(1)(c) (with reg. 10)

87 Post-duty point dilution of alcoholic products U.K.

(1) A person may not mix water or any other substance with alcoholic products on which alcohol duty is chargeable if—

(a) the mixing takes places after the excise duty point in relation to that charge,

(b) the resulting product is intended for sale, and

(c) if the mixing had taken place immediately before the excise duty point, the amount of alcohol duty would have been greater than the amount actually payable.

(2) This section has effect, despite section 8 of the Isle of Man Act 1979, as if a removal of relevant alcoholic products to the United Kingdom from the Isle of Man constituted their importation into the United Kingdom (and references to the charge to alcohol duty and to the excise duty point are to be read accordingly).

Commencement Information

I7 S. 87 not in force at Royal Assent, see s. 120(2)

I8 S. 87 in force at 1.8.2023 by S.I. 2023/884, reg. 2(1)(c) (with reg. 10)

88 Alcoholic products regulations U.K.

(1) The Commissioners may by regulations (“alcoholic products regulations”) make provision—

(a) regulating the production, packaging, keeping and storage of alcoholic products produced in, or imported into, the United Kingdom;

(b) for determining when the production of any alcoholic product begins and when it is completed;

(c) for securing and collecting alcohol duty;

(d) for determining alcohol duty, the rate and the method of charging the duty;

(e) for charging alcohol duty, in specified circumstances, by reference to an alcoholic strength which any alcoholic product might reasonably be expected to have, or the rate of duty in force, at a time other than that at which the alcoholic product becomes chargeable;

(f) for determining the alcohol production amount in relation to a set of premises (for the purposes of Chapter 3 of this Part), in specified circumstances, by reference to an alcoholic strength which any alcoholic product might reasonably be expected to have at a time other than that at which the alcoholic product is produced;

(g) for full or partial relief from alcohol duty in specified circumstances (and whether or not subject to conditions);

(h) regulating or prohibiting the addition of substances to, the mixing of, or the carrying out of other operations on or in relation to, any alcoholic product;

(i) regulating the approval of persons under this Chapter, including the variation or revocation of the approval or of any condition or restriction to which it is subject;

(j) permitting, in specified circumstances, the removal of alcoholic products from certain premises without payment of duty (whether or not subject to conditions);

(k) make provision in respect of alcoholic products permitted to be removed from premises without payment of duty or on which alcohol duty has been remitted;

(l) regulating the transportation of alcoholic products;

(m) requiring the production of certificates as to matters relating to alcoholic products imported into the United Kingdom, and the production and producer of those products, as evidence that conditions for charging the duty at a particular rate are satisfied.

(2) Alcoholic products regulations may, in particular, include provision—

(a) requiring the making of returns;

(b) for notifications and other communications with the Commissioners to be made electronically;

(c) requiring persons to keep, and make available for inspection, specified records relating to alcoholic products;

(d) for the imposition under the regulations of requirements as to documents to accompany, or be provided with, alcohol products at any time during a specified period or in specified circumstances, and requiring production of those documents;

(e) conferring powers on an officer of Revenue and Customs to inspect, copy or remove for a reasonable period records or documents relating to alcoholic products;

(f) for assessing an amount as alcohol duty due from a person in specified circumstances;

(g) for the imposition under the regulations of conditions and restrictions (which may include a requirement to give a guarantee or other security).

(3) The reference in subsection (1)(k) to alcoholic products permitted to be removed from premises without payment of duty is treated as including a reference to alcoholic products that are—

(a) treated for the purposes of alcohol duty, by provision made (or having effect as if made) under section 12 of the Customs and Excise Duties (General Reliefs) Act 1979 (supply of duty-free goods to His Majesty’s ships), as exported,

(b) supplied to persons on whom relief from payment of alcohol duty is conferred by provision made under section 13A of that Act (reliefs from duties and taxes for persons enjoying certain immunities and privileges), or

(c) supplied for use on a ship, aircraft or railway vehicle as stores, in accordance with provision made under section 60A of CEMA 1979 (power to make regulations about stores).

(4) In this section, “specified” means specified by or under alcoholic products regulations.

Commencement Information

I9 S. 88 in force at Royal Assent for specified purposes, see s. 120(1)(b)

I10 S. 88 in force at 1.8.2023 in so far as not already in force by S.I. 2023/884, reg. 2(1)(c) (with reg. 10)

89 Penalties and forfeiture U.K.

(1) This section applies if a person contravenes or fails to comply with—

(a) section 82,

(b) section 86(1),

(c) section 87(1), or

(d) any provision made by or under alcoholic products regulations.

(2) The person’s conduct attracts a penalty under section 9 of FA 1994.

(3) Any alcoholic products, articles (including packaging or equipment) or substances in the person's possession, used (or which may be used) for or in connection with an action to which the contravention or failure relates, are liable to forfeiture.

Commencement Information

I11 S. 89 not in force at Royal Assent, see s. 120(2)

I12 S. 89 in force at 1.8.2023 for specified purposes by S.I. 2023/884, reg. 2(1)(d) (with reg. 10)