The Beer (Amendment) Regulations 2011

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations, which come into force on 1st October 2011, amend the Beer Regulations 1993 (S.I. 1993/1228) (“the 1993 Regulations”), which regulate the production and packaging of beer for the purposes of excise duty, and include provisions on holding beer in duty suspension, returns of duty, payment, record-keeping, dilution and mixing of beer, and relief from duty for spoilt beer.

Amendments in the Finance Act 2011 (c. 11) to the Alcoholic Liquor Duties Act 1979 (c. 4) (“ALDA”) create a new charge of excise duty on high strength beer. The new duty, high strength beer duty, is charged in addition to the existing excise duty on beer charged by section 36(1) of ALDA (general beer duty). High strength beer duty is charged on beer of an alcoholic strength exceeding 7.5 per cent which is imported into the United Kingdom or produced in the United Kingdom on or after 1st October 2011.

Amendments to ALDA made by section 14 of the Finance Act 2011 will come into force on 1st October 2011 to introduce a new reduced rate for general beer duty on lower strength beer (of a strength exceeding 1.2 per cent but not exceeding 2.8 per cent) in addition to the existing reduced rates for small brewery beer.

The amendments made by regulations 2(2) and 2(3)(b) apply the provisions of the 1993 Regulations for the purposes of high strength beer duty as they apply for the purposes of general beer duty. Regulation 2(2) amends the definition of “duty” in the 1993 Regulations to include high strength beer duty where previously it referred only to excise duty charged on beer by section 36(1) of ALDA. Regulation 2(3)(b) amends a reference in regulation 8 to the existing excise duty to add a reference to high strength beer duty. Regulation 2(3), subparagraphs (a) and (c) introduce a new provision that where high strength beer is mixed with another beer in duty suspension, the production of the resulting beer is completed when mixing is completed.

Regulation 2(4) amends regulation 22 of the 1993 Regulations on mixing beer. Where small brewery beer was mixed with beer charged with a different rate of general beer duty regulation 22 had required the product of such mixing to be charged with the standard rate of duty. New paragraphs (5) and (6) indicate that either the standard rate of general beer duty or the lower strength beer reduced rate is applicable to the resulting mixture, according to the strength of that mixture.

A Tax Information and Impact Note covering this instrument was published on 23rd March 2011 alongside Budget and is available on the HMRC website at http://www.hmrc.gov.uk/thelibrary/tiins.htm. It remains an accurate summary of the impacts that apply to this instrument.