Finance Act 2017

Introductory U.K.

25 Soft drinks industry levy U.K.

(1) A tax called “soft drinks industry levy” is to be charged in accordance with this Part.

(2) The Commissioners are responsible for the collection and management of soft drinks industry levy.

Commencement Information

I1 S. 25 in force at 6.4.2018 by S.I. 2018/464, art. 2(e)

26 “Soft drink” and “package” U.K.

(1) “Soft drink” means—

(a) a beverage of an alcoholic strength not exceeding 1.2%;

(b) a liquid which, when prepared in a specified manner, constitutes a beverage within paragraph (a);

[F1 (c) a liquid flavouring (a “flavour concentrate”) which, when processed in a specified manner in a dispensing machine, constitutes a beverage within that paragraph.]

(2) A liquid is prepared in a specified manner if it is—

(a) diluted with water,

(b) combined with crushed ice, or processed so as to create crushed ice,

(c) combined with carbon dioxide, or

(d) prepared by way of a process that involves any combination of the processes mentioned in paragraphs (a) to (c).

[F2 (2A) A flavour concentrate is processed in a specified manner if—

(a) it is combined with added sugar ingredients, with or without—

(i) artificial sweeteners, or

(ii) one or more other flavour concentrates; and

(b) the flavour concentrate (or combination) is prepared in a specified manner.

(2B) A “dispensing machine” is a machine designed to—

(a) combine, process or prepare ingredients so as to produce a beverage, and

(b) supply the beverage directly to a consumer.

(2C) In subsection (2A)(a), “added sugar ingredients” means anything within paragraph (a) or (b) of section 29(2).]

(3) A person “packages” a soft drink if the person cans, bottles or otherwise packages the soft drink in a form in which—

(a) in the case of a soft drink within subsection (1)(a), it is suitable to be consumed without further preparation, F3 ...

(b) in the case of a soft drink within subsection (1)(b), it is suitable to be consumed when prepared in a specified manner (and without any other preparation), [F4 and

(c) in the case of a soft drink within subsection (1)(c)—

(i) it is suitable to be consumed when processed in a specified manner in a dispensing machine (and without any other processing or preparation), and

(ii) it is ready for use in a dispensing machine;]

and “packaged” is to be construed accordingly.

Textual Amendments

F1 S. 26(1)(c) inserted (in relation to soft drinks that are packaged in, or imported into, the United Kingdom on or after 1.4.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 21 paras. 2(2), 8

F2 S. 26(2A)-(2C) inserted (in relation to soft drinks that are packaged in, or imported into, the United Kingdom on or after 1.4.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 21 paras. 2(3), 8

F3 Word in s. 26(3)(a) omitted (in relation to soft drinks that are packaged in, or imported into, the United Kingdom on or after 1.4.2023 ) by virtue of Finance (No. 2) Act 2023 (c. 30), Sch. 21 paras. 2(4)(a), 8

F4 S. 26(3)(c) and word inserted (in relation to soft drinks that are packaged in, or imported into, the United Kingdom on or after 1.4.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 21 paras. 2(4)(b), 8

Commencement Information

I2 S. 26 in force at 6.4.2018 by S.I. 2018/464, art. 2(e)

27 Meaning of “prepared drink” U.K.

(1) In this Part a reference to “prepared drink” is a reference to—

(a) a soft drink within subsection (1)(a) of section 26;

(b) a beverage that would result from preparing a liquid within subsection (1)(b) of that section—

(i) in a specified manner (see section 26(2)), and

(ii) in accordance with the relevant dilution ratio;

[F5 (c) a beverage that would result from—

(i) processing a flavour concentrate within subsection (1)(c) of that section in a specified manner in a dispensing machine, and

(ii) in accordance with the relevant dispensing instructions.]

(2) The “relevant dilution ratio” means—

(a) the dilution ratio stated on, or calculated by reference to information stated on, the packaging of the soft drink;

(b) where [F6 subsection (3)(a)] or (4) applies, the dilution ratio determined by the Commissioners.

[F7 (2A) The “relevant dispensing instructions” means—

(a) the instructions for use of the flavour concentrate provided with, or for the purposes of use with, the concentrate or a dispensing machine with which it is designed to be used;

(b) where subsection (3)(b) or (4A) applies, the dispensing instructions determined by the Commissioners.]

[F8 (3) This subsection applies where—

(a) in a case within subsection (1)(b), the packaging of the soft drink states neither the dilution ratio nor information by reference to which the dilution ratio can be calculated;

(b) in a case within subsection (1)(c), no dispensing instructions are provided with, or for the purposes of use with, the flavour concentrate or with any dispensing machine with which it is designed to be used.]

(4) This subsection applies where—

(a) the dilution ratio, or information by reference to which the dilution ratio can be calculated, is stated on the packaging of the soft drink, and

(b) it is reasonable to assume that the main purpose, or one of the main purposes, of stating that particular dilution ratio or information is avoiding or reducing liability for soft drinks industry levy.

[F9 (4A) This subsection applies where—

(a) dispensing instructions are provided, and

(b) it is reasonable to assume that the main purpose, or one of the main purposes, of providing those particular dispensing instructions is avoiding or reducing liability for soft drinks industry levy.]

(5) The Commissioners may by or under regulations make provision about the criteria for—

(a) determining a dilution ratio for the purposes of subsection (2)(b);

[F10 (aa) determining dispensing instructions for the purposes of subsection (2A)(b);]

[F11 (b) determining whether the main purpose, or one of the main purposes, of—

(i) stating a particular dilution ratio or information, or

(ii) providing particular dispensing instructions;

is avoiding or reducing liability for soft drinks industry levy.]

Textual Amendments

F5 S. 27(1)(c) inserted (in relation to soft drinks that are packaged in, or imported into, the United Kingdom on or after 1.4.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 21 paras. 3(2), 8

F6 Words in s. 27(2)(b) substituted (in relation to soft drinks that are packaged in, or imported into, the United Kingdom on or after 1.4.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 21 paras. 3(3), 8

F7 S. 27(2A) inserted (in relation to soft drinks that are packaged in, or imported into, the United Kingdom on or after 1.4.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 21 paras. 3(4), 8

F8 S. 27(3) substituted (in relation to soft drinks that are packaged in, or imported into, the United Kingdom on or after 1.4.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 21 paras. 3(5), 8

F9 S. 27(4A) inserted (in relation to soft drinks that are packaged in, or imported into, the United Kingdom on or after 1.4.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 21 paras. 3(6), 8

F10 S. 27(5)(aa) inserted (in relation to soft drinks that are packaged in, or imported into, the United Kingdom on or after 1.4.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 21 paras. 3(7)(a), 8

F11 S. 27(5)(b) substituted (in relation to soft drinks that are packaged in, or imported into, the United Kingdom on or after 1.4.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 21 paras. 3(7)(b), 8

Commencement Information

I3 S. 27 in force at 13.1.2018 for specified purposes by S.I. 2018/32, reg. 2

I4 S. 27 in force at 6.4.2018 in so far as not already in force by S.I. 2018/464, art. 2(e)