(1)There shall be charged on wine—
(a)imported into the United Kingdom; or
(b)produced in the United Kingdom by a person who is required by subsection (2) below to be licensed to produce wine for sale,
a duty of excise at the rates shown in Schedule 1 to this Act and the duty shall, in so far as it is chargeable on wine produced in the United Kingdom, be charged and paid in accordance with regulations under section 56 below [F1and with any regulations under section 1 of the Finance (No. 2) Act 1992].
(2)Subject to subsection (4) below, a person who, on any premises in the United Kingdom, produces wine for sale must hold an excise licence under this subsection in respect of those premises for that purpose.
F2(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
[F3(3A)For the purposes of this Act, the process of blending or otherwise mixing two or more wines (in this subsection referred to as “the constituent wines”) constitutes the production of wine if—
(a)the rate of duty applicable to one of the constituent wines is different from that applicable to the other or, as the case may be, at least one of the others; and
(b)the rate of duty applicable to the wine which is the product of the blending or other mixing is higher than that which is applicable to at least one of the constituent wines; and
(c)the blending or other mixing is with a view to dealing wholesale in the wine which is the product thereof;
and for the purposes of this subsection the rate of duty applicable to any wine is that which is or would be chargeable under subsection (1) above on its importation into the United Kingdom or, as the case may be, on its production as mentioned in paragraph (b) of that subsection.
(3B)Where, by virtue of subsection (3A) above, wine is produced in the United Kingdom, duty shall be chargeable on that wine by virtue of paragraph (b) of subsection (1) above whether or not duty was previously charged on all or any of the constituent wines by virtue of paragraph (a) or paragraph (b) of that subsection; but nothing in this subsection shall affect the operation of any regulations under section 56 below giving relief from duty on wine so produced by reference to duty charged on all or any of the constituent wines.]
(4)A person who, in warehouse, produces wine for sale by rendering it sparkling in accordance with warehousing regulations need not hold an excise licence under subsection (2) above in respect of those premises.
[F4(4A)A person who, on any premises, produces [F5wine of a strength not exceeding 5.5 per cent] by rendering it sparkling, need not on that account hold an excise licence under subsection (2) above in respect of those premises.]
(5)If any person who is required by subsection (2) above to hold a licence under that subsection in respect of any premises produces wine on those premises without being the holder of a licence under that subsection in respect of those premises [F6his doing so shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties) F7..., and the wine] and all vessels, utensils and materials for producing wine found in his possession shall be liable to forfeiture.
Textual Amendments
F1Words in s. 54(1) inserted (1.12.1992) by Finance (No. 2) Act 1992 (c. 48), s. 1(5), Sch. 1 para. 12;S.I. 1992/2979, art. 3, Sch. Pt. II
F2S. 54(3) repealed by Finance Act 1986 (c. 41, SIF 40:1), s. 114, Sch. 23 Pt. IV
F3S. 54(3A)(3B) inserted (retrospectively) by Finance Act 1985 (c. 54, SIF 40:1), s. 5(1)(2)
F4S. 54(4A) inserted by Finance Act 1988 (c. 39, SIF 40:1), s. 1, Sch. 1 Pt. II para. 4
F5Words in s. 54(4A) substituted (19.7.2006) by Finance Act 2006 (c. 25), s. 5(3)
F6Words in s. 54(5) substituted (1.1.1995) by 1994 c. 9, s. 9, Sch. 4 Pt. II para. 34 (with s. 19(3)); S.I. 1994/2679, art. 3
F7Words in s. 54(5) omitted (with effect in accordance with art. 3 of the commencing S.I.) by virtue of Finance Act 2008 (c. 9), s. 123(2), Sch. 41 para. 25(c)(ii); S.I. 2009/511, art. 2 (with art. 4)
Modifications etc. (not altering text)
C1S. 54(1)(b) modified by S.I. 1985/403, reg. 4