Part I Preliminary

1 The alcoholic liquors dutiable under this Act.

1

Subsections (2) to (8) below define for the purposes of this Act the alcoholic liquors which are subject to excise duty under this Act, that is to say—

a

spirits,

b

beer,

c

wine,

d

made-wine, and

e

cider;

and in this Act “dutiable alcoholic liquor” means any of those liquors and “duty” means excise duty.

F12

“Spirits” means, subject to subsections (7) to (9) below—

a

spirits of any description which are of a strength exceeding 1.2 per cent

b

any such mixture, compound or preparation made with spirits as is of a strength exceeding 1.2 per cent or

c

liquors contained, with any spirits, in any mixture which is of a strength exceeding 1.2 per cent.

F250....

3

“Beer” includes ale, porter, stout and any other description of beer, and any liquor which is made or sold as a description of beer or as a substitute for beer and which F2is of a strength exceeding F30.5 per cent., but does not include—

a

black beer the worts whereof before fermentation were of a specific gravity of 1200° or more; F4. . .

F4b

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4

“Wine” means any liquor F5which is of a strength exceeding 1.2 per cent and which is obtained from the alcoholic fermentation of fresh grapes or of the must of fresh grapes, whether or not the liquor is fortified with spirits or flavoured with aromatic extracts.

5

“Made-wine” means F6subject to subsection (10) F7and section 55B(1) below any liquor F5which is of a strength exceeding 1.2 per cent and which is obtained from the alcoholic fermentation of any substance or by mixing a liquor so obtained or derived from a liquor so obtained with any other liquor or substance but does not include wine, beer, black beer, spirits or cider.

6

“Cider” means F7, subject to section 55B(1) below, cider (or perry) of a strength F8exceeding 1.2 per cent butF9 less than 8.5 per cent. . . . F10 obtained from the fermentation of apple or pear juice without the addition at any time of any alcoholic liquor or of any liquor or substance which communicates colour or flavour other than such as the Commissioners may allow as appearing to them to be necessary to make cider (or perry).

7

Angostura bitters, that is to say, the aromatic flavouring essence commonly known as angostura bitters, shall be deemed not to be spirits, but this subsection does not apply for the purposes of sections 2, 5, 6 and 27 to 30 below.

8

Methyl alcohol, notwithstanding that it is so purified or prepared as to be drinkable, shall not be deemed to be spirits nor shall naptha or any mixture or preparation containing naphtha or methyl alcohol and not containing spirits as defined in subsection (2) above.

F119

F12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10

The Treasury may by order made by statutory instrument provide that any beverage of an alcoholic strength exceeding 1.2 per cent. but not exceeding 5.5 per cent. which is made with beer or cider and is of a description specified in the order shall be deemed to be beer or, as the case may be, cider, and not to be made-wine.

P12F13 Ascertainment of strength volume and weight of alcoholic liquors.

1

Subject to subsections (5) and (6) below, this section applies to spirits, F14anything that would be spirits if it were of a strength exceeding 1.2 per cent.,F251... and any fermented liquor other than wash, and “liquor” shall be construed accordingly.

2

For all purposes of this Act—

a

except where some other measure of quantity is specified, any computation of the quantity of any liquor or of the alcohol contained in any liquor shall be made in terms of the volume of the liquor or alcohol, as the case may be;

b

any computation of the volume of any liquor or of the alcohol contained in any liquor shall be made in litres as at 20_C; and

c

the alcoholic strength of any liquor is the ratio of the volume of the alcohol contained in the liquor to the volume of the liquor (inclusive of the alcohol contained in it);

and in this Act, unless the context otherwise requires—

  • “alcohol” means ethyl alcohol; and

  • “strength” in relation to any liquor, means its alcoholic strength computed in accordance with this section, the ratio referred to in paragraph (c) above being expressed as a percentage.

3

The Commissioners may make regulations prescribing the means to be used for ascertaining for any purpose the strength, weight or volume of any liquor, and any such regulations may provide that in computing for any purpose the strength of any liquor any substance contained therein which is not alcohol or distilled water may be treated as if it were.

F153A

Without prejudice to the generality of subsection (3) above, regulations under that subsection may provide that for the purpose of charging duty on any spirits, F16beer,F17cider, wine or made-wine contained in any bottle or other container, the strength, weight or volume of the F18liquor in that bottle or other container may be ascertained by reference to any information given on the bottle or other container by means of a label or otherwise or to any documents relating to the bottle or other container.

4

Different regulations may be made under subsection (3) above for different purposes.

5

Nothing in this section shall prevent the strength, weight or volume of F19beer, wine, made-wine or cider from being computed for the purpose of charging duty thereon by methods other than that provided in this section.

F206

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7

Except as provided in subsection (8) below, where the quantity of alcohol contained in any spirits F252... falls to be computed in accordance with this section on or after 1st January 1980 and the quantity of those spirits F252... was last computed in accordance with this section before that date the following conversion factor shall be applied in making the first-mentioned computation, that is to say, one gallon of spirits at proof shall be taken to be equivalent to 2·595 litres of alcohol.

8

The Commissioners may, if they think fit in any particular case, require the quantity of alcohol contained in any spirits F253... falling within subsection (7) above to be computed in accordance with this section without applying the conversion factor specified in that subsection.

P23 Meaning of and method of ascertaining gravity of liquids.

1

For the purposes of the Customs and Excise Acts 1979—

a

“gravity”, in relation to any liquid, means the ratio of the weight of a volume of the liquid to the weight of an equal volume of distilled water, the volume of each liquid being computed as at F2120_C;

b

where the gravity of any liquid is expressed as a number of degrees that number shall be the said ratio multiplied by 1,000; and

c

“original gravity”, in relation to any liquid in which fermentation has taken place, means its gravity before fermentation.

2

The gravity of any liquid at any time shall be ascertained by such means as the Commissioners may approve, and the gravity so ascertained shall be deemed to be the true gravity of the liquid.

3

F22. . ., where for any purposes of the Customs and Excise Acts 1979 it is necessary to ascertain the original gravity of worts in which fermentation has commenced or of any liquid produced from such worts, that gravity shall be determined in such manner as the Commissioners may by regulations prescribe.

4

Different regulations may be made under subsection (3) above in relation to different liquids.

F235

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4 Interpretation.

1

In this Act, unless the context otherwise requires,—

  • F24“alcohol” has the meaning given by section 2 above;

  • F254“authorised denaturer” means a person authorised under section 75(1) below to denature dutiable alcoholic liquor;

  • “beer” has the meaning given by section 1 above;

  • “black beer” means beer of the description called or similar to black beer, mum, spruce beer or Berlin white beer, and any other preparation (whether fermented or not) of a similar character;

  • F25. . .

  • “British compounded spirits” means spirits which have, in the United Kingdom, had any flavour communicated thereto or ingredient or material mixed therewith, not being F255denatured alcohol ;

  • “case”, in relation to dutiable alcoholic liquor, means 1 dozen units each consisting of a container holding not less than F2665 nor more than 80 centilitres, or the equivalent of that number of such units made up wholly or partly of containers of a larger or smaller size;

  • “cider” has the meaning given by section 1 above;

  • “compounder” means a person holding a licence as a compounder under section 18 below;

  • F256“denatured alcohol” means denatured alcohol within the meaning of section 5 of the Finance Act 1995, and references to denaturing a liquor are references to subjecting it to any process by which it becomes denatured alcohol;

  • “distiller”, means a person holding a distiller’s licence under section 12 below;

  • “distiller’s licence” has the meaning given by section 12(1) below;

  • “distiller’s warehouse” means a place of security provided by a distiller and approved by the Commissioners under section 15(1) below;

  • “distillery” means premises where spirits are manufactured, whether by distillation of a fermented liquor or by any other process;

  • “dutiable alcoholic liquor” has the meaning given by section 1(1) above;

  • “duty” has the meaning given by section 1(1) above and “duty-paid”, “duty-free” and references to drawback shall be construed accordingly;

  • “gravity” and “original gravity” have the meanings given by section 3 above;

  • “justices’ licence” and “justices on-licence”—

    1. a

      F273...

    2. b

      in the application of this Act to Northern Ireland mean a licence corresponding to the relevant licence such as is mentioned in paragraph (a) of this definition;

  • “licensed”, in relation to a producer of wine or of made-wine, means a producer who holds a licence to produce wine or made-wine respectively under subsection (2) of section 54 or 55 below;

  • F257“licensed denaturer” means a person holding a licence under section 75(2) below;

  • F25. . .

  • “made-wine” has the meaning given by section 1 above;

  • “the Management Act” means the M1Customs and Excise Management Act 1979;

  • F258...

  • F28F27“package”, in relation to beer, means to put beer into tanks, casks, kegs, cans, bottles or any other receptacles of a kind in which beer is distributed to wholesalers or retailers;

  • “packager”, in relation to beer, means a person carrying on the business of packaging beer;

  • “the prescribed sum”, in relation to the penalty provided for an offence, means—

    1. a

      if the offence was committed in England or Wales . . . F29, the prescribed sum within the meaning of F30section 32 of the Magistrates’ Court Act 1980 (£1,000 or other sum substituted by order under section 143(1) of that Act);

    2. b

      if the offence was committed in Scotland, the prescribed sum within the meaning of F31subsection (8) of section 225 of the Criminal Procedure (Scotland) Act 1995 (£5,000 or other sum substituted by order under subsection (4) of that section);

    3. c

      F32if the offence was committed in Northern Ireland, the prescribed sum within the meaning of Article 4 of the Fines and Penalties (Northern Ireland) Order 1984 (£1,000 or other sum substituted by order under Article 17 of that Order);

  • “producer of made-wine” includes a person who renders made-wine sparkling and “produce”, in relation to made-wine, shall be construed accordingly;

  • “producer of wine” includes a person who renders wine sparkling, and “produce”, in relation to wine, shall be construed accordingly;

  • . . . F33

  • “rectifier” means a person holding a licence as a rectifier under section 18 below;

  • F34“registered brewer” has the meaning given by section 47(1) below;

  • “ registered club” means a club F273... which is for the time being a registered club within the meaning of the M2Licensing (Scotland) Act 1976 or which is for the time being a registered club within the meaning of the F35Registration of Clubs (Northern Ireland) Order 1996;

  • “retailer” means—

    1. a

      in relation to dutiable alcoholic liquor, a person who sells such liquor by retail;

    2. b

      . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F36

  • “Scottish licence” includes a licence of a type described in Schedule 1 to the M3Licensing (Scotland) Act 1976, (other than an off-sale licence), an occasional licence granted in terms of section 33 of the said Act, an occasional permission granted in terms of section 34 of the said Act, and a licence granted in terms of section 40 of the said Act;

  • “spirits” has the meaning given by section 1 above;

  • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F37

  • “spirits of wine” means plain spirits of a strength of not less than F3880 per cent. manufactured in the United Kingdom;

  • F24“strength”, in relation to any liquor, has the meaning given by section 2 above;

  • F39“wholesale”, in relation to dealing in dutiable alcoholic liquor, means the sale at any one time to any one person of quantities not less than the following, namely—

a

in the case of spirits, wine or made-wine, 9 litres or 1 case; or

b

in the case of beer or cider, 20 litres or 2 cases;

  • F39“wholesaler” means a person who deals wholesale in dutiable alcoholic liquor;

  • “wine” has the meaning given by section 1 above.

2

This Act and the other Acts included in the Customs and Excise Acts 1979 shall be construed as one Act but where a provision of this Act refers to this Act that reference is not to be construed as including a reference to any of the others.

3

Any expression used in this Act or in any instrument made under this Act to which a meaning is given by any other Act included in the Customs and Excise Acts 1979 has, except where the context otherwise requires, the same meaning in this Act or in any such instrument as in that Act; and for ease of reference the Table below indicates the expressions used in this Act to which a meaning is given by any other such Act—

Management Act

  • “the Commissioners”

  • “container”

  • “the Customs and Excise Acts 1979”

  • “excise warehouse”

  • “goods”

  • “hovercraft”

  • “importer”

  • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F40

  • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F41

  • “night”

  • “occupier”

  • “officer” and “proper” in relation to an officer

  • “ship” and “British ship”

  • “shipped”

  • “shipment”

  • “stores”

  • “tons register”

  • F42“United Kingdom waters”

  • “warehouse”

  • “warehousing regulations”.

4

For the purposes of this Act, selling by retail, in relation to dutiable alcoholic liquor, means the sale at any one time to any one person of quantities not exceeding the following, that is to say—

a

in the case of spirits, wine or made-wine, F439 litres or 1 case;

b

in the case of beer or cider, F4321 litres or 2 cases.

Part II Spirits

Charge of excise duty

C15 Spirits: charge of excise duty.

There shall be charged on spirits—

a

imported into the United Kingdom; or

b

distilled, or manufactured by any other process whatsoever, in the United Kingdom,

a duty of excise F44at the rate of F293£21.35 per litre of alcohol in the spirits

Reliefs from excise duty

5AF298Exemption from duty on spirits in flavourings

1

Duty shall not be payable on any spirits contained in flavourings imported into the United Kingdom or used in the production of flavourings if the flavourings are for use in—

a

the preparation of food for human consumption, or

b

the preparation of any beverage of an alcoholic strength not exceeding 1.2 per cent.

2

In subsection (1) above “flavourings” mean any products falling within CN Code 3302 of the Combined Nomenclature established by Council Regulation (EEC) No 2658/87 as amended by Commission Regulation (EC) No 1832/2002.

6 Power to exempt angostura bitters from duty.

On the importation of the aromatic flavouring essence commonly known as angostura bitters, the Commissioners may, subject to such conditions as they see fit to impose, direct the bitters to be treated for the purposes of the charge of duty on spirits as not being spirits.

F456A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

C27 Exemption from duty of spirits in articles used for medical purposes.

Duty shall not be payable on any spirits contained in an article imported or delivered from warehouse which is recognised by the Commissioners as being used for medical purposes.

C38F46 Remission of duty in respect of spirits used for medical or scientific purposes.

1

Where a person proposes to use spirits—

a

in the manufacture or preparation of any article recognised by the Commissioners as being an article used for medical purposes; or

b

for scientific purposes,

the Commissioners may, if they think fit and subject to such conditions as they see fit to impose, authorise that person to receive, and permit the delivery from warehouse to that person of, spirits for that use without payment of the duty chargeable thereon.

2

If any person contravenes or fails to comply with any condition imposed under this section F47his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties).

F483

Subsection (4) below applies if—

a

spirits are received and delivered in accordance with subsection (1) above,

b

they are not used as proposed, and

c

it is not shown to the satisfaction of the Commissioners that they can be accounted for by natural waste or other legitimate cause.

4

In such a case the Commissioners—

a

may assess as being excise duty due from the person concerned an amount equal to the duty that would have been chargeable on the spirits if, at the time of delivery from warehouse, they had been delivered for home use and otherwise than in accordance with subsection (1) above, and

b

may notify him or his representative accordingly.

F2729 Remission of duty on spirits for methylation.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

C410 Remission of duty on spirits for use in art or manufacture.

1

Where, in the case of any art or manufacture carried on by any person in which the use of spirits is required, it is proved to the satisfaction of the Commissioners that the use of F259denatured alcohol is unsuitable or detrimental, the Commissioners may, if they think fit and subject to such conditions as they see fit to impose, authorise that person to receive, and permit the delivery from warehouse to that person of, spirits for use in that art or manufacture without payment of the duty chargeable thereon.

2

If any person contravenes or fails to comply with any condition imposed under this section F49 his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties).

F503

Subsection (4) below applies if—

a

spirits are received and delivered in accordance with subsection (1) above,

b

they are not used as proposed, and

c

it is not shown to the satisfaction of the Commissioners that they can be accounted for by natural waste or other legitimate cause.

4

In such a case the Commissioners—

a

may assess as being excise duty due from the person concerned an amount equal to the duty that would have been chargeable on the spirits if, at the time of delivery from warehouse, they had been delivered for home use and otherwise than in accordance with subsection (1) above, and

b

may notify him or his representative accordingly.

11 Relief from duty on imported goods not for human consumption containing spirits.

F511

On the importation of goods not for human consumption containing spirits as a part or ingredient thereof, the Commissioners may, subject to such conditions as they may think fit to impose, direct the goods to be treated for the purposes of the charge of duty on spirits (and in particular the charge under section 126 of the Management Act) as not containing spirits.

F522

Subsection (3) below applies if—

a

the Commissioners make a direction under subsection (1) above, but

b

it turns out that the goods were for human consumption.

3

In such a case the Commissioners—

a

may assess as being excise duty due from the relevant person an amount equal to the duty that would have been chargeable on the goods if the direction had not been made, and

b

may notify him or his representative accordingly.

4

The reference in subsection (3) above to the relevant person is to the importer or (if different) the person who sought the direction.

Manufacture of spirits

12 Licence to manufacture spirits.

1

No person shall manufacture spirits, whether by distillation of a fermented liquor or by any other process, unless he holds an excise licence for that purpose under this section (referred to in this Act as a “distiller’s licence”).

F532

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F543

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F2754

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5

Where the largest still to be used on any premises in respect of which a distiller’s licence is sought for the manufacture of spirits by distillation of a fermented liquor is of less than F5518 hectolitres capacity, the Commissioners may refuse to grant the licence or may grant it only subject to such conditions as they see fit to impose F56and where the largest still so used on any premises in respect of which a licence is held is of less than that capacity, the Commissioners may revoke the licence or attach to it such conditions as they see fit to impose.

F576

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

P313 Power to make regulations relating to manufacture of spirits.

1

The Commissioners may, with a view to the protection of the revenue, make regulations—

a

regulating the manufacture of spirits, whether by distillation of a fermented liquor or by any other process;

b

for securing and collecting the duty on spirits manufactured in the United Kingdom; and

c

regulating the removal of spirits from a distillery;

and different regulations may be made in respect of manufacture for different purposes or by different processes.

F581A

Without prejudice to the generality of subsection (1) above, regulations under that subsection may—

a

provide for the imposition under the regulations of conditions and restrictions relating to the matters mentioned in that subsection; and

b

impose or provide for the imposition of requirements on a manufacturer of spirits to keep and preserve records relating to his business as such a manufacturer and to produce them to an officer when required to do so for the purpose of allowing him to inspect them, to copy or take extracts from them or to remove them at a reasonable time and for a reasonable period.

1B

Where any documents removed under the powers conferred by subsection (1A)(b above are lost or damaged the Commissioners shall be liable to compensate their owner for any expenses reasonably incurred by him in replacing or repairing the documents.

2

Where—

a

the Commissioners are satisfied that any process of manufacture carried on by any person involving the manufacture of spirits is primarily directed to the production of some article other than spirits; or

b

the Commissioners see fit in the case of any person manufacturing spirits by any process other than distillation of a fermented liquor,

they may direct that, subject to compliance with such conditions as they think proper to impose, such of the provisions of this Act relating to the manufacture of, or manufacturers of, spirits or such of any regulations made under this section as may be specified in the direction shall not apply in the case of that person.

F592A

If the Commissioners so direct, spirits manufactured by a process to which a direction under subsection (2) above applies shall be treated as not being within the charge of duty on spirits under section 5 above.

C53

If, save as provided in subsection (2) above, any person contravenes or fails to comply with any regulation made under subsection (1) above F60or with any condition, restriction or requirement imposed under such a regulationF61his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties) and any spirits, and any vessels, utensils and materials used for distilling or otherwise manufacturing or for preparing spirits, F61in respect of which any person contravenes any such regulation, or fails to comply with any such regulation, condition, restriction or requirement, shall be liable to forfeiture.

F624

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5

If any person in whose case a direction is given by the Commissioners under subsection (2) above acts in contravention of or fails to comply with any condition imposed under that subsection which is applicable in his case, F63his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties), and any spirits in respect of which any person contravenes or fails to comply with any such condition shall be liable to forfeiture.

F27614 Duty on spirits—attenuation charge.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

P415 Distiller’s warehouse.

1

A distiller may provide in association with his distillery a place of security for the deposit of spirits manufactured at that distillery and, if that place is approved by the Commissioners and entry is made thereof by the distiller, may deposit therein without payment of duty any spirits so manufactured.

F642

The Commissioners may approve such a place of security for such periods and subject to such conditions as they think fit.

3

A place of security for the time being approved by the Commissioners under subsection (1) above is referred to in this Act as a “distiller’s warehouse”.

F2774

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F655

Where, after the approval of a distiller’s warehouse, the distiller by whom it is provided makes, without the previous consent of the Commissioners, an alteration in or addition to that warehouse, the making of the alteration or addition shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties).

6

The Commissioners may make regulations—

a

regulating the warehousing of spirits in a distiller’s warehouse;

b

permitting, in so far as it appears to them necessary in order to meet the circumstances of any special case and subject to such conditions as they see fit to impose, the deposit by a distiller in his distiller’s warehouse without payment of duty of spirits other than spirits manufactured at the distillery associated with that warehouse;

c

for securing the duties on spirits so warehoused;

and subject to any such regulations, the provisions of Parts VIII and X of the Management Act, except sections 92 and 96, shall apply in relation to a distiller’s warehouse and spirits warehoused therein as they apply in relation to an excise warehouse approved under subsection (1) of section 92 of that Act and goods warehoused therein.

F666A

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

C6C77

If any person contravenes or fails to comply with any regulation made under subsection (6) above F67or with any condition . . . F68 imposed under such a regulationF69his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties), and any spirits in respect of which any person contravenes any such regulation, or fails to comply with any such regulation or condition, shall be liable to forfeiture.

F708

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9

The Commissioners may at any time for reasonable cause revoke or vary the terms of their approval of a distiller’s warehouse.

C916 Racking of duty-paid spirits at distillery. C8

1

The Commissioners may, with a view to the protection of the revenue, make regulations regulating the racking at a distillery of duty-paid spirits.

2

If any person contravenes or fails to comply with any regulation made under this section, F71his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties), and any spirits in respect of which any person contravenes or fails to comply with any such regulation shall be liable to forfeiture.

F723

If on an officer’s taking stock of duty-paid spirits racked at a distillery, a greater quantity of alcohol is found at the place of racking than ought to be there according to any accounts required by regulations made under this section to be kept thereof then—

a

duty shall be charged on the excess; and

b

if the excess amounts to more than 1 per cent. of the quantity of alcohol lawfully brought into the place of racking since stock was last taken, such a quantity of spirits as contains an amount of alcohol equal to that excess shall be liable to forfeiture, and F73there shall be deemed to have been conduct by the distiller attracting a penalty under section 9 of the Finance Act 1994 (civil penalties).

4

Paragraph (b) of subsection (3) above shall not apply where the excess of alcohol is less than 3 litres.

17 Offences in connection with removal of spirits from distillery, etc.

1

If any person—

a

conceals in or without the consent of the proper officer removes from a distillery any wort, wash, low wines, feints or spirits; or

b

knowingly buys or receives any wort, wash, low wines, feints or spirits so concealed or removed; or

c

knowingly buys or receives or has in his possession any spirits which have been removed from the place where they ought to have been charged with duty before the duty payable thereon has been charged and either paid or secured, not being spirits which have been condemned or are deemed to have been condemned as forfeited,

he shall be guilty of an offence under this section and may be detained, and the goods shall be liable to forfeiture.

2

A person guilty of an offence under this section shall be liable—

a

on summary conviction, to a penalty of the prescribed sum or three times the value of the goods, whichever is the greater, or to imprisonment for a term not exceeding 6 months, or to both; or

b

on conviction on indictment, to a penalty of any amount, or to imprisonment for a term not exceeding 2 years, or to both.

Rectifying and compounding of spirits

18 Rectifier’s and compounder’s licences.

1

No person shall rectify or compound spirits and keep a still for that purpose unless he holds an excise licence under this section as a rectifier.

2

Except as permitted by the Commissioners and subject to such conditions as they see fit to impose, no other person shall compound spirits unless he holds an excise licence under this section as a compounder.

F743

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F754

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F2785

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6

Without prejudice to section 25 below and except as provided by this section, if any person rectifies or compounds spirits otherwise than under and in accordance with an excise licence under this Act so authorising him, F76his doing so shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties).

19 Regulation of rectifying and compounding.

1

The Commissioners may, with a view to the protection of the revenue, make regulations—

a

regulating the rectifying and compounding of spirits;

b

regulating the receipt, storage, removal and delivery of spirits by rectifiers and compounders;

and different regulations may be made under this section for rectifiers and compounders.

F771A

Without prejudice to the generality of subsection (1) above, regulations under that subsection may—

a

provide for the imposition under the regulations of conditions and restrictions relating to the matters mentioned in that subsection; and

b

impose or provide for the imposition under the regulations of requirements on rectifiers and compounders of spirits to keep and preserve records relating to their business as such and to produce them to an officer when required to do so for the purpose of allowing him to inspect them, to copy or take extracts from them or to remove them at a reasonable time and for a reasonable period.

1B

Where any documents removed under the powers conferred by subsection (1A)(b) above are lost or damaged the Commissioners shall be liable to compensate their owner for any expenses reasonably incurred by him in replacing or repairing the documents.

2

If any person contravenes or fails to comply with any regulation made under this section F78or with any condition, restriction or requirement imposed under any such regulation, F79his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties), and any spirits and any other article in respect of which any person contravenes any such regulation, or fails to comply with any such regulation, condition, requirement or restriction, shall be liable to forfeiture.

F803

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

20 Penalty for excess or deficiency in rectifier’s stock.

F811

If at any time when an account is taken by an officer and a balance struck of the spirits in the stock of a rectifier any excess of alcohol is found, such a quantity of spirits as contains an amount of alcohol equal to the excess shall be liable to forfeiture and F82there shall be deemed to have been conduct by the rectifier attracting a penalty under section 9 of the Finance Act 1994 (civil penalties).

2

If at any time when an account is taken and a balance struck as aforesaid any deficiency of alcohol is found which cannot be accounted for to the satisfaction of the Commissioners and which exceeds 5 per cent. of the aggregate of—

a

the quantity of alcohol in the balance of spirits struck when an account was last taken; and

b

the quantity of alcohol contained in any spirits since lawfully received by the rectifier,

F82there shall be deemed to have been conduct by the rectifier attracting a penalty under section 9 of the Finance Act 1994 (civil penalties).

3

For the purposes of any such account and of this section—

a

spirits used by a rectifier in warehouse in pursuance of warehousing regulations shall be deemed not to be spirits in his stock as a rectifier; and

b

where a rectifier also carries on the trade of a wholesaler of spirits on the same premises, all spirits in his possession (other than spirits so used) shall be deemed to be spirits in his stock as a rectifier.

F27921 Restrictions relating to rectifiers.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

22 Drawback on British compounds and spirits of wine.

C10C111

Subject to the provisions of this section and to such conditions and restrictions as the Commissioners may by regulations impose, a rectifier or compounder may warehouse in an excise warehouse on drawback any British compounded spirits or spirits of wine rectified or compounded by him from duty-paid spirits and not containing any methyl alcohol or any wine, made-wine or other fermented liquor.

2

British compounded spirits may be warehoused under this section for exportation F83or removal to the Isle of Man, for use in any permitted operation in warehouse, for use as stores or, except in the case of tinctures other than perfumed spirits, for home use.

3

Spirits of wine may be warehoused under this section—

a

For exportation, for use in any permitted operation in warehouse, or for use as stores; or

b

if of a strength of not less than F8485 per cent., for delivery for use in art or manufacture under section 10 above; or

c

if of a strength of not less than F8599 per cent., for home use.

F86C12C113A

The Commissioners may, subject to such conditions and restrictions as they may by regulations impose, allow drawback to any person on any British compounded spirits or spirits of wine rectified or compounded by him from duty-paid spirits and not containing any methyl alcohol or any wine, made-wine or other fermented liquor if they are exported direct from his premises.

C134

The Commissioners may, subject to such conditions and restrictions as they may by regulations impose, allow drawback on tinctures or spirits of wine exported or, except in the case of spirits of wine, shipped as stores by a rectifier or compounder direct from his premises.

F87C14C115

Subject to subsection 6 below, the amount of any drawback payable under this section shall be calculated by reference to the quantity of alcohol contained in the British compounded spirits or spirits of wine and shall be an amount equal to the duty at the appropriate rate chargeable on spirits containing an equal quantity of alcohol and so chargeable at the date when duty was paid on the spirits from which the British compounded spirits or spirits of wine were rectified or compounded.

F886

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F89

8

British compounded spirits warehoused under this section for home use shall upon delivery from warehouse for that purpose be chargeable with the same rate of duty as spirits warehoused by a distiller.

9

If any person contravenes or fails to comply with any regulation made under this section F90his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties), and any article in respect of which any person contravenes or fails to comply with any such regulation shall be liable to forfeiture.

10

In this section “tinctures” means medicinal spirits, flavouring essences, perfumed spirits and such other articles containing spirits as the Commissioners may by regulations specify as tinctures.

F9123 Allowance on British compounds.

  • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

General provisions relating to manufacture of spirits and British compounds

F28024 Restriction on carrying on of other trades by distiller or rectifier.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

25 Penalty for unlawful manufacture of spirits, etc.

1

Save as provided by or under this Act, any person who, otherwise than under and in accordance with an excise licence under this Act so authorising him—

a

manufactures spirits, whether by distillation of a fermented liquor or by any other process; or

b

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F92 uses a still for distilling, rectifying or compounding spirits; or

c

distils or has in his possession any low wines or feints; or

d

not being a vinegar-maker, F93produces or makes or has in his possession any wort or wash fit for distillation,

shall be liable on summary conviction to a penalty of F94level 5 on the standard scale.

2

Where there is insufficient evidence to convict a person of an offence under subsection (1) above, but it is proved that such an offence has been committed on some part of premises belonging to or occupied by that person in such circumstances that it could not have been committed without his knowledge, that person shall be liable on summary conviction to a penalty of F95level 3 on the standard scale.

3

Any person found on premises on which spirits are being unlawfully manufactured or on which a still is being unlawfully used for rectifying or compounding spirits may be detained.

4

All spirits and stills, vessels, utensils, wort, wash and other materials for manufacturing, distilling or preparing spirits—

a

found in the possession of any person who commits an offence under subsection (1) above; or

b

found on any premises on which such an offence has been committed,

shall be liable to forfeiture.

5

Notwithstanding any other provision of the Customs and Excise Acts 1979 relating to goods seized as liable to forfeiture, any officer by whom any thing is seized as liable to forfeiture under subsection (4) above may at his discretion forthwith spill, break up or destroy that thing.

6

Without prejudice to any other power conferred by the Customs and Excise Acts 1979, if any officer has reasonable grounds for suspecting that any thing liable to forfeiture under this section is in or upon any land or other premises in Northern Ireland, he may enter upon those premises, if need be by force, and search them and seize and remove any thing which he has reasonable grounds to believe to be so liable.

General provisions relating to spirits

F28126 Importation and exportation of spirits.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

27. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F96

31. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F97

F28232 Restriction on transfer of British spirits in warehouse.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

33 Restrictions on use of certain goods relieved from spirits duty.

1

If any person uses otherwise than for a medical or scientific purpose—

a

any mixture which has on importation been relieved to any extent of the duty chargeable in respect of the spirits contained in it or used in its preparation or manufacture by reason of being a mixture which is recognised by the Commissioners as being used for medical purposes; or

b

any article containing spirits which were exempted from duty under section 7 above; or

c

any article manufactured or prepared from spirits in respect of which F98remission of duty has been obtained under section 8 above; . . . F99

d

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F99

F100his doing so shall, unless he has complied with the requirements specified in subsection (2) below, attract a penalty under section 9 of the Finance Act 1994 (civil penalties), and any article in his possession in the preparation or manufacture of which the mixture or article has been used shall be liable to forfeiture.

2

The requirements with which a person must comply to avoid incurring liability under subsection (1) above are that—

a

he must obtain the consent of the Commissioners in writing to the use of the mixture or article otherwise than for a medical or scientific purpose; and

b

he must pay to the Commissioners an amount equal to the difference between the duty charged on the mixture and the duty which would have been chargeable if it had not been a mixture recognised as mentioned in subsection (1)(a) above, or to the amount of the duty F101remitted, as the case may be.

3

The Commissioners may make regulations for the purpose of enforcing the provisions of this section.

4

Regulations under subsection (3) above may in particular require any person carrying on any trade in which spirits, or mixtures or articles containing or prepared or manufactured with spirits, are in the opinion of the Commissioners likely to be or to have been used—

a

to give and verify particulars of the materials which he is using or has used and of any such mixtures or articles which he has sold; and

b

to produce any books of account or other documents of whatever nature relating to any such materials, mixtures or articles.

5

If any person contravenes or fails to comply with any regulation made under subsection (3) above F102his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties).

6

In this section “mixture” includes a preparation and a compound, and any reference to a mixture or article includes a reference to any part thereof.

34 Prohibition of grogging.

1

No person shall—

a

subject any cask to any process for the purpose of extracting any spirits absorbed in the wood thereof; or

b

have on his premises any cask which is being subjected to any such process or any spirits extracted from the wood of any cask.

F1032

A contravention of this section shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties).

3

All spirits extracted contrary to this section and every cask which is being subjected to any such process or which, being upon premises upon which spirits so extracted are found, has been subjected to any such process shall be liable to forfeiture.

F28335 Returns as to importation, manufacture, sale or use of alcohols.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part III Beer

Charge of excise duty

F10436 Beer: charge of excise duty.

1

There shall be charged on beer—

a

imported into the United Kingdom, or

b

produced in the United Kingdom,

a duty of excise F105at the rates specified in subsection (1AA) below .

F1061AA

The rates at which the duty shall be charged are—

a

in the case of beer that is not small brewery beer, F294£14.96 per hectolitre per cent of alcohol in the beer;

b

in the case of small brewery beer produced in a singleton brewery, the rate per hectolitre per cent of alcohol in the beer that is given by section 36D below;

c

in the case of small brewery beer produced in a co-operated brewery, the rate per hectolitre per cent of alcohol in the beer that is given by section 36F below.

F1071A

No duty shall be chargeable under subsection (1) above on beer which is of a strength of 1.2 per cent. or less; but any such beer shall in all other respects be treated as if it were chargeable with a duty of excise.

2

Subject to the provisions of this Act—

a

the duty on beer produced in, or imported into, the United Kingdom shall be charged and paid, and

b

the amount chargeable in respect of any such duty shall be determined and become due,

in accordance with regulations under section 49 below F108and with any regulations under section 1 of the Finance (No. 2) Act 1992.

Annotations:
Amendments (Textual)
F153

Ss. 36A-36H inserted (retrospective to 1.6.2002 (except s. 36H in force at 24.7.2002)) by Finance Act 2002 (c. 23), s. 4, Sch. 1 para. 2

F153Reduced rates of excise duty

36A Beer from small breweries: introductory

1

For the purposes of section 36(1AA) above (but subject to subsection (2) below)—

a

whether beer produced in a singleton brewery is “small brewery beer” is determined in accordance with section 36C below, and

b

whether beer produced in a co-operated brewery is “small brewery beer” is determined in accordance with section 36E below.

2

Beer is not small brewery beer if it is produced by a person on any premises in circumstances in which he is required to be, but is not, registered under section 47 below in respect of those premises.

36B Interpretation of provisions relating to small brewery beer

1

The following provisions of this section have effect for the purposes of section 36(1AA) above, section 36A above, this section and sections 36C to 36F below.

2

A brewery is a “singleton brewery” at any particular time in a calendar year if it is not a co-operated brewery at that time.

3

A brewery is a “co-operated brewery” at any particular time in a calendar year if—

a

a person who produces beer in the brewery at that time or any earlier time in that year, or

b

a person connected with such a person,

also produces beer in any other brewery at that time or any earlier time in that year.

4

“Brewery” means premises (whether or not in the United Kingdom) on which beer is produced and that are situated physically apart from any other premises on which beer is produced.

5

“The standard beer duty rate” means the rate of duty specified by section 36(1AA)(a) above.

6

References to “the grossed-up amount” of an estimate of the amount of a brewery’s production in a calendar year are to the amount given by—

E(365-N)×365math

where—

E is the amount of the estimate, and

N is the number of days (if any) in the calendar year before the brewery begins to be used as beer-production premises.

7

References to a brewery being used as beer-production premises are, in the case of a brewery in the United Kingdom, to there being at least one person who is required to be registered under section 47 below in respect of the brewery.

8

Any question whether a person is connected with another shall be determined in accordance with section 839 of the Income and Corporation Taxes Act 1988.

36C Meaning of “small brewery beer": beer from singleton breweries

1

This section applies to beer produced in a brewery at a time in a calendar year (“the current year”) when the brewery is a singleton brewery.

2

The beer is “small brewery beer” if the following conditions are satisfied; but this is subject to subsections (9) and (10) below.

3

The first condition is that either—

a

no beer was produced in the brewery in the previous calendar year (“the previous year”), or

b

the amount of beer produced in the brewery in the previous year was not more than F23760,000 hectolitres .

4

For the purposes of subsection (3)(b) above, where the brewery was in use as beer-production premises during part only of the previous year, the amount of beer produced in the previous year in the brewery shall be taken to have been—

where—

A is the amount of beer actually produced in the previous year in the brewery, and

D is the number of days in that part of the previous year.

5

The second condition is that the amount of the estimate under subsection (9) below of the brewery’s production in the current year is not more than F23860,000 hectolitres .

6

The third condition is that if the brewery begins to be used as beer-production premises part-way through the current year, the grossed-up amount of that estimate is not more than F23960,000 hectolitres .

7

The fourth condition is that less than half of the beer produced in the brewery in the previous year was produced under licence.

8

The fifth condition is that the beer is not produced under licence.

9

Beer produced in the brewery in the current year before the person who first produces beer in the brewery in that year has made a reasonable estimate of the amount of beer that will be produced in the brewery in that year is not small brewery beer.

10

Beer produced in the brewery in the current year after the amount of beer produced in the brewery in the current year has reached F24060,000 hectolitres is not small brewery beer.

11

Subsection (10) above is without prejudice to section 167(4) of the Customs and Excise Management Act 1979 (recovery of duty unpaid by reason of untrue document or statement).

36D Rate of duty for small brewery beer from singleton breweries

1

This section applies to small brewery beer produced in a brewery at a time in a calendar year (“the current year”) when the brewery is a singleton brewery.

2

The rate of duty in the case of that beer (“the brewery rate”) is determined in accordance with this section.

3

Subsection (4) below applies if—

a

beer was produced in the brewery in the previous calendar year (“the previous year”) and the amount produced in the brewery in that year was not more than 5,000 hectolitres, or

b

no beer was produced in the brewery in the previous year and the grossed-up amount of the estimate under section 36C(9) above of the brewery’s production in the current year is not more than 5,000 hectolitres.

4

If this subsection applies, “the brewery rate” is 50% of the standard beer duty rate at the time concerned; but this is subject to rounding under subsection (7) below.

5

Subsection (6) below applies if—

a

beer was produced in the brewery in the previous year and the amount produced in the brewery in that year was more than 5,000 hectolitres but not more than 30,000 hectolitres, or

b

no beer was produced in the brewery in the previous year and the grossed-up amount of the estimate under section 36C(9) above of the brewery’s production in the current year is more than 5,000 hectolitres but not more than 30,000 hectolitres.

6

If this subsection applies, “the brewery rate” is, subject to rounding under subsection (7) below, given by—

where—

if this subsection applies by reason of subsection (5)(a) above, P is the amount, in hectolitres, of beer produced in the brewery in the previous year, and

if this subsection applies by reason of subsection (5)(b) above, P is the grossed-up amount (expressed in hectolitres) mentioned in subsection (5)(b).

F2416A

Subsection (6B) below applies if—

a

beer was produced in the brewery in the previous year and the amount produced in the brewery in that year was more than 30,000 hectolitres but not more than 60,000 hectolitres, or

b

no beer was produced in the brewery in the previous year and the grossed-up amount of the estimate under section 36C(9) above of the brewery’s production in the current year is more than 30,000 hectolitres but not more than 60,000 hectolitres.

6B

If this subsection applies, “the brewery rate” is, subject to rounding under subsection (7) below, given by—

where—

  • if this subsection applies by reason of subsection (6A)(a) above, P is the amount, in hectolitres, of beer produced in the brewery in the previous year, and

  • if this subsection applies by reason of subsection (6A)(b) above, P is the grossed-up amount (expressed in hectolitres) mentioned in subsection (6A)(b).

7

Where a rate given by subsection (4) F242, (6) or (6B) above would (apart from this subsection) not be a whole number of pennies, the rate given by that subsection shall be taken to be the rate actually given by that subsection rounded up to the nearest penny.

8

Where the brewery was in use as beer-production premises during part only of the previous year, for the purposes of subsections (3)(a), (5)(a) F243, (6), (6A)(a) and (6B) above the amount of beer produced in the brewery in the previous year shall be taken to have been—

where—

A is the amount of beer actually produced in the previous year in the brewery, and

D is the number of days in that part of the previous year.

36E Meaning of “small brewery beer": beer from co-operated breweries

1

This section applies to beer produced in a brewery at a time in a calendar year (“the current year”) when the brewery is a co-operated brewery.

2

The beer is “small brewery beer” if the following conditions are satisfied; but this is subject to subsections (10) and (11) below.

3

In this section—

  • “the group” means the group of breweries consisting of—

    1. a

      the co-operated brewery, and

    2. b

      every brewery (other than the co-operated brewery) in which beer is produced at the time mentioned in subsection (1) above, or at any earlier time in the current year, by—

      1. i

        a person who produces beer in the co-operated brewery at the time so mentioned or at any earlier time in the current year, or

      2. ii

        a person connected with such a person;

  • “group brewery” means a brewery that is in the group;

  • “the previous year” means the calendar year immediately preceding the current year.

4

The first condition is that either—

a

no beer was produced in the previous year in the group, or

b

the amount given by PY + GE is not more than F24460,000 hectolitres , where—

  • PY is the amount of beer produced in the previous year in the group, and

  • GE is the aggregate of the grossed-up amount of each estimate that—

  • (i) is an estimate for the purposes of subsection (10) below of the amount of the production in the current year in a group brewery in which no beer was produced in the previous year, and

  • (ii) is made no later than the time mentioned in subsection (1) above.

5

For the purposes of subsection (4)(b) above, where a group brewery was in use as beer-production premises during part only of the previous year, the amount of beer produced in the previous year in that brewery shall be taken to have been—

where—

A is the amount of beer actually produced in the previous year in that brewery, and

D is the number of days in that part of the previous year.

6

The second condition is that the aggregate of each estimate that—

a

is an estimate for the purposes of subsection (10) below of the amount of a group brewery’s production in the current year, and

b

is made no later than the time mentioned in subsection (1) above,

is not more than F24560,000 hectolitres .

7

The third condition is that if any group brewery begins to be used as beer-production premises part-way through the current year, the aggregate of the grossed-up amount of each estimate that—

a

is an estimate for the purposes of subsection (10) below of the amount of a group brewery’s production in the current year, and

b

is made no later than the time mentioned in subsection (1) above,

is not more than F24660,000 hectolitres .

8

The fourth condition is that less than half of the beer produced in the previous year in each group brewery was produced under licence.

9

The fifth condition is that the beer is not produced under licence.

10

Beer produced in the co-operated brewery at an unestimated time is not small brewery beer; and here “unestimated time” means a time in the current year when there is a group brewery for which there does not exist a reasonable estimate, made by the person who first produces beer in that brewery in that year, of the amount of beer that will be produced in that brewery in that year.

11

Beer produced in the co-operated brewery in the current year after the amount of beer produced in the group in the current year has reached F24760,000 hectolitres is not small brewery beer.

12

Subsection (11) above is without prejudice to section 167(4) of the Customs and Excise Management Act 1979 (recovery of duty unpaid by reason of untrue document or statement).

36F Rate of duty for small brewery beer from co-operated breweries

1

This section applies to small brewery beer produced in a brewery at a time in a calendar year (“the current year”) when the brewery is a co-operated brewery.

2

The rate of duty in the case of that beer (“the brewery rate”) is determined in accordance with this section.

3

In this section—

  • “the group” means the group of breweries consisting of—

    1. a

      the co-operated brewery, and

    2. b

      every brewery (other than the co-operated brewery) in which beer is produced at the time mentioned in subsection (1) above, or at any earlier time in the current year, by—

      1. i

        a person who produces beer in the co-operated brewery at the time so mentioned or at any earlier time in the current year, or

      2. ii

        a person connected with such a person;

  • “group brewery” means a brewery that is in the group;

  • “the previous year” means the calendar year immediately preceding the current year;

  • “the notional previous year’s production” has the meaning given by subsection (4) below.

4

In this section “the notional previous year’s production” means the amount, in hectolitres, given by PY + GE where—

  • PY is the amount of beer produced in the group in the previous year, and

  • GE is the aggregate of the grossed-up amount of each estimate that—

  • (a) is an estimate for the purposes of section 36E(10) above of the amount of the production in the current year in a group brewery in which no beer was produced in the previous year, and

  • (b) is made no later than the time mentioned in subsection (1) above.

5

Where a group brewery was in use as beer-production premises during part only of the previous year, in calculating PY for the purposes of subsection (4) above the amount of beer produced in that brewery in the previous year shall be taken to have been—

where—

A is the amount of beer actually produced in the previous year in that brewery, and

D is the number of days in that part of the previous year.

6

Subsection (7) below applies if—

a

beer was produced in at least one group brewery in the previous year and the notional previous year’s production is not more than 5,000 hectolitres, or

b

no beer was produced in the group in the previous year and the aggregate of each estimate that—

i

is an estimate for the purposes of section 36E(10) above of the amount of a group brewery’s production in the current year, and

ii

is made no later than the time mentioned in subsection (1) above,

is not more than 5,000 hectolitres.

7

If this subsection applies, “the brewery rate” is 50% of the standard rate at the time mentioned in subsection (1) above; but this is subject to rounding under subsection (10) below.

8

Subsection (9) below applies if—

a

beer was produced in at least one group brewery in the previous year and the notional previous year’s production is more than 5,000 hectolitres but not more than 30,000 hectolitres, or

b

no beer was produced in the group in the previous year and the aggregate mentioned in subsection (6)(b) above is more than 5,000 hectolitres but not more than 30,000 hectolitres.

9

If this subsection applies, “the brewery rate” is, subject to rounding under subsection (10) below, given by—

where—

if this subsection applies by reason of subsection (8)(a) above, P is the previous year’s notional production,

if this subsection applies by reason of subsection (8)(b) above, P is the amount, in hectolitres, of the aggregate mentioned in subsection (6)(b) above, and

“the standard rate” means the standard beer duty rate at the time mentioned in subsection (1) above.

F2489A

Subsection (9B) below applies if—

a

beer was produced in at least one group brewery in the previous year and the notional previous year’s production is more than 30,000 hectolitres but not more than 60,000 hectolitres, or

b

no beer was produced in the group in the previous year and the aggregate mentioned in subsection (6)(b) above is more than 30,000 hectolitres but not more than 60,000 hectolitres.

9B

If this subsection applies, “the brewery rate” is, subject to rounding under subsection (10) below, given by—

where—

  • if this subsection applies by reason of subsection (9A)(a) above, P is the previous year’s notional production,

  • if this subsection applies by reason of subsection (9A)(b) above, P is the amount, in hectolitres, of the aggregate mentioned in subsection (6)(b) above, and

  • “the standard rate” means the standard beer duty rate at the time mentioned in subsection (1) above.

10

Where a rate given by subsection (7) F249, (9) or (9B) above would (apart from this subsection) not be a whole number of pennies, the rate given by that subsection shall be taken to be the rate actually given by that subsection rounded up to the nearest penny.

36G Assessments where incorrectly low rate of duty applied

1

Subsection (3) below applies if—

a

duty is charged by section 36 above on any beer, and

b

it appears at the excise duty point that the beer is small brewery beer for the purposes of section 36(1AA) above, but

c

it turns out that the beer was not small brewery beer for those purposes (because, for example, circumstances were not as they appeared at that point or they subsequently changed).

2

Subsection (3) below also applies if—

a

duty is charged by section 36 above on any beer that is small brewery beer for the purposes of section 36(1AA) above, and

b

the rate of duty that at the excise duty point appeared to be the correct rate turns out to have been lower than the correct rate (because, for example, circumstances were not as they appeared at that point or they subsequently changed).

3

In any such case the Commissioners—

a

may assess the amount that is the difference between—

i

the actual amount of the duty charged on the beer by section 36 above, and

ii

the lower amount that, at the excise duty point, appeared to be the amount charged,

as being excise duty due from the person liable to pay the duty charged on the beer by section 36 above, and

b

may notify him or his representative accordingly.

4

Where two or more persons are liable to pay the duty charged on the beer—

a

the reference in subsection (3)(a) above to the person liable to pay the duty is to any one or more of those persons, and

b

the reference in subsection (3)(b) above to notifying the person liable or his representative is to notifying each person assessed or his representative.

36H Power to vary reduced rate provisions

1

The Treasury may by order made by statutory instrument make provision amending this Act for the purpose of causing excise duty to be charged on a description of beer—

a

at a reduced rate instead of at the standard rate;

b

at the standard rate instead of at a reduced rate;

c

at a different reduced rate.

2

In this section—

  • “reduced rate” means a rate lower than the standard rate, and

  • “the standard rate” means the rate specified by section 36(1AA)(a) above.

3

An order under subsection (1) above may—

a

make different provision for different cases;

b

make such consequential amendments in this Act and other enactments as appear to the Treasury to be necessary or expedient;

c

make such other consequential provision, and such incidental and transitional provision, as appears to the Treasury to be necessary or expedient.

4

A statutory instrument by which there is made an order under subsection (1) above shall be laid before the House of Commons after being made.

Unless the instrument is approved by the House of Commons before the expiration of 28 days beginning with the date on which the instrument was made, the order shall cease to have effect on the expiration of that period.

Where the order so ceases to have effect, that does not prejudice—

a

anything previously done under the order, or

b

the making of a new order.

In reckoning any such period of 28 days, no account shall be taken of any time during which Parliament is dissolved or prorogued or during which the House of Commons is adjourned for more than 4 days.

F113. . .

Annotations:
Amendments (Textual)

F10937. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F11038. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F11139. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F11240. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Reliefs from excise duty

41F114Exemption from duty of beer brewed for private consumption.

The duty on beer produced in the United Kingdom shall not be chargeable on beer produced by a person who produces beer only for his own domestic use.

41AF115Suspension of duty: registration of persons and premises.

1

A person registered by the Commissioners under this section may hold, on premises so registered in relation to him, any beer of a prescribed class or description—

a

which has been produced in, or imported into, the United Kingdom, and

b

which is chargeable as such with excise duty,

without payment of that duty.

2

A person entitled under subsection (1) above to hold beer on premises without payment of duty may also without payment of duty carry out on those premises such operations as may be prescribed on, or in relation to, such of the beer as may be prescribed.

3

No person shall be registered under this section unless—

a

he is a registered brewer or a packager of beer; and

b

he appears to the Commissioners to satisfy such requirements for registration as they may think fit to impose.

4

No premises shall be registered under this section unless—

a

they are used for the production or packaging of beer, or

b

they are adjacent to, and occupied by the same person as, premises falling within paragraph (a) above which are registered under this section,

and they appear to the Commissioners to satisfy such requirements for registration as the Commissioners may think fit to impose.

5

The Commissioners may register a person or premises under this section for such periods and subject to such conditions as they think fit.

6

The Commissioners may at any time for reasonable cause—

a

revoke or vary the terms of their registration of any person or premises under this section; or

b

restrict the premises which are so registered.

7

As respects beer chargeable with a duty of excise that has not been paid, regulations under section 49 below may, without prejudice to the generality of that section, make provision—

a

regulating the holding or packaging of, or the carrying out of other operations on or in relation to, any such beer on registered premises without payment of the duty;

b

for securing and collecting the duty on any such beer held on registered premises;

c

permitting the removal of any such beer from registered premises without payment of duty in such circumstances and subject to such conditions as may be prescribed;

F116d

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8

If any person contravenes or fails to comply with any condition of registration under this section F117his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties), and any beer in respect of which any person contravenes or fails to comply with any such condition shall be liable to forfeiture.

9

In this section—

  • “prescribed” means specified in, or determined in accordance with, regulations made by the Commissioners under section 49 below;

  • “registered premises” means premises registered under this section.

C16C1742 Drawback on exportation, removal to warehouse, shipment as stores, etc.C15

1

This section applies to—

a

beer which has been F118produced by a F118registered brewer; and

b

beer which has been imported, or which has been removed into the United Kingdom from the Isle of Man.

2

Subject to the provisions of this section and to such conditions as the Commissioners see fit to impose, drawback shall be allowable—

F119a

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

b

on the exportation F120. . . by any person of F121any beer to which this section applies; or

c

on the shipment as stores by any person of any such beer;

and shall also be allowable, subject as aforesaid, in the case of any beer to which this section applies which it is shown to the satisfaction of the Commissioners is being F122exported or shipped as mentioned in paragraph (b) or (c) above as an ingredient of other goods.

F1233

In the case of beer produced in the United Kingdom, the person intending to F124. . . export or ship the beer shall produce to the proper officer a declaration made by the person who paid the duty on the beer, in such form and manner as the Commissioners may direct, stating the strength of the beer and the date on which the duty became payable.

4

In the case of beer F118produced outside the United Kingdom, the person intending to F124. . . export or ship the beer shall produce to the proper officer in such form and manner as the Commissioners may direct a declaration that the proper duty has been charged and paid thereon.

5

The amount of the drawback payable under this section in respect of any duty paid shall be calculated according to the rate of drawback applicable during the period of currency of the rate at which the duty was paid to like beer charged with that rate of duty during that period.

6

Drawback under this section shall, where it is shown to the satisfaction of the Commissioners that duty has been paid, be allowed at the same rate as the rate at which the duty is charged; . . . F125

F12643. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

44 Remission or repayment of duty on beer used for purposes of research or experiment.

1

Where it is proved to the satisfaction of the Commissioners that any beer F127produced in the United Kingdom which is chargeable with duty is to be used only for the purposes of research or of experiments in F128the production of beer, the Commissioners may, if they think fit and subject to such conditions as they see fit to impose, remit or repay the duty chargeable on that beer.

2

If any person contravenes or fails to comply with any condition imposed under subsection (1) above, F129his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties).

F13045. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

46F131 Remission or repayment of duty on spoilt beer.

1

Where it is shown to the satisfaction of the Commissioners that any beer which has been removed from any premises of a registered brewer in respect of which he is registered under section 47 below has become spoilt or otherwise unfit for use and, in the case of beer delivered to another person, has been returned to the registered brewer as so spoilt or unfit, the Commissioners shall, subject to compliance with such conditions as they may by regulations impose, remit or repay any duty charged or paid in respect of the beer.

2

If any person contravenes or fails to comply with any regulation made under subsection (1) above, F132his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties).

F152Producing of beer

Annotations:
Amendments (Textual)
F152

Word in cross heading for ss. 47-53 substituted (1.6.1993) by Finance Act 1991 (c. 31, SIF 40:1), s. 7(4)(5), Sch. 2 para. 1(b); S.I. 1993/1152, art. 3(2), Sch. 1 Pt. II.

47F133 Registration of producers of beer.

1

A person who produces beer on any premises in the United Kingdom must be registered with the Commissioners under this section in respect of those premises; and in this Act “registered brewer” means a person registered under this section in respect of any premises.

2

A person who produces beer on any premises shall not be required to be registered under this section in respect of those premises if the beer is produced solely for his own domestic use or solely for the purposes of research or experiments in the production of beer.

3

An application for the registration under this section of any person required to be so registered in respect of any premises—

a

shall be made at least fourteen days before the day on which he begins production of beer on those premises; and

b

shall be in such form and manner as the Commissioners may by or under regulations prescribe.

4

If any person fails to apply for registration under this section in circumstances where he is required by subsection (3)(a) above to do so, F134his failure shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties); and any beer or worts produced in contravention of that provision shall be liable to forfeiture.

5

If any person produces beer on any premises in circumstances in which he is required to be, but is not, registered under this section in respect of those premises, F135his doing so shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties) which shall be calculated by reference to the amount of duty charged on the beer produced, and the beer produced and any worts found on those premises shall be liable to forfeiture.

48F233Licence to use premises for adding solutions to beer.

1

A brewer for sale shall not use for the purpose of adding priming or colouring solutions to beer any premises other than premises entered by him for the brewing of beer or an excise warehouse unless he holds an excise licence for that purpose under this section.

2

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F234

3

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F235

4

If any brewer for sale uses any premises for the purpose mentioned in subsection (1) above contrary to this section or otherwise than in accordance with any licence granted to him in respect thereof under this section, he shall be liable on summary conviction to a penalty of F236level 3 on the standard scale .

F13649 Beer regulations.

1

The Commissioners may, with a view to managing, securing and collecting the duty on beer produced in, or imported into, the United Kingdom or to the protection of the revenues derived from the duty of excise on beer, make regulations—

a

regulating the production, packaging, keeping and storage of beer produced in the United Kingdom and the packaging, keeping and storage of beer imported into the United Kingdom;

b

regulating the registration of persons and premises under section 41A or 47 above and the revocation or variation of any such registrations;

c

for determining under or in accordance with the regulations when the production of beer begins and when it is completed;

d

for securing and collecting the duty;

F137e

for determining the duty and the rate thereof and, in that connection, prescribing the method of charging the duty;

f

for charging the duty, in such circumstances as may be prescribed in the regulations, by reference to a strength which the beer might reasonably be expected to have, or the rate of duty in force, at a time other than that at which the beer becomes chargeable;

g

for relieving beer from the duty in such circumstances and to such extent as may be prescribed in the regulations;

h

regulating and, in such circumstances as may be prescribed in the regulations, prohibiting the addition of substances to, the mixing of, or the carrying out of other operations on or in relation to, beer;

j

regulating the transportation of beer in such circumstances as may be prescribed in the regulations.

F138k

requiring the production of certificates as to matters relating to beer imported into the United Kingdom and the beer’s production and producer, whether as alternative conditions for charging the duty on the beer at a rate lower than that specified by section 36(1AA)(a) above or as evidence that conditions for charging the duty at such a rate are satisfied.

2

Regulations under this section may make different provision for persons, premises or beer of different classes or descriptions, for different circumstances and for different cases.

C26F139C183

Where any person contravenes or fails to comply with any regulation made under this section, his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties), and any article or substance in respect of which any person contravenes or fails to comply with any such regulation shall be liable to forfeiture.

49AF140 Drawback allowable to F141registered brewer.

1

For the purpose of any claim for drawback by a F142registered brewer or person registered under section 41A above in respect of duty charged on beer, duty which has been determined in accordance with regulations under F143section 49(1)(e) above shall be deemed to be duty which has been paid (whether or not it is in fact paid by the time the claim is made).

2

Subject to such conditions as the Commissioners see fit to impose, drawback allowable to a F144registered brewer or person registered under section 41A above in respect of beer may be set against any amount to which F145he is chargeable F146in respect of the excise duty on beerand, in relation to a F144registered brewer or person registered under section 41A above, any reference in this Act or the Management Act to drawback payable shall be construed accordingly.

F14750. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F14851. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F149F15052 Offences in connection with fraudulent evasion of duty.

If any person is knowingly concerned in the taking of any steps with a view to the fraudulent evasion, whether by himself or another, of the duty on any beer, he shall be liable—

a

on summary conviction, to a penalty of the statutory maximum or of three times the amount of the duty, whichever is the greater, or to imprisonment for a term not exceeding six months or to both, or

b

on conviction on indictment, to a penalty of any amount or to imprisonment for a term not exceeding 7 years, or to both,

and, in either case, any beer in respect of which the offence was committed shall be liable to forfeiture.

F15153. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part IV Wine and Made-Wine

54 Wine: charge of excise duty.

1

There shall be charged on wine—

a

imported into the United Kingdom; or

C19b

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 F154and 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.

3

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F155

F1563A

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.

F1574A

A person who, on any premises, produces F284wine 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 F158his doing so shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties) which shall be calculated by reference to the amount of duty charged on the wine produced, and the wine and all vessels, utensils and materials for producing wine found in his possession shall be liable to forfeiture.

55 Made-wine: charge of excise duty.

1

There shall be charged on made-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 made-wine for sale,

a duty of excise at the rates shown in F159Schedule 1 to this Act and the duty shall, in so far as it is chargeable on made-wine produced in the United Kingdom, be charged and paid in accordance with regulations under section 56 below F160and with any regulations under section 1 of the Finance (No. 2) Act 1992.

2

Subject to subsections (4) and (5) below, a person who, on any premises in the United Kingdom, produces made-wine for sale must hold an excise licence under this subsection in respect of those premises for that purpose.

3

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F161

4

A person who, in warehouse, produces made-wine for sale be rendering it sparkling in accordance with warehousing regulations need not hold an excise licence under subsection (2) above in respect of those premises.

F1624A

A person who, on any premises, produces F285made-wine 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

A person need not hold an excise licence under subsection (2) above in respect of premises on which he produces made-wine for sale so long as all the following conditions are satisfied in relation to the production of made-wine by him on those premises, that is to say—

F163aa

he does not blend or otherwise mix two or more alcoholic liquors to which paragraphs (a) and (b) of section 66A(1) below or paragraphs (a) and (b) of section 66A(2) below apply;

a

the duty chargeable on each alcoholic ingredient used by him has become payable before he uses it;

b

the ingredients he uses do not include cider or black beer;

c

he does not increase by fermentation the alcoholic strength of any liquor or substance used by him; and

d

he does not F164render sparkling any made-wine other than F286made-wine of a strength not exceeding 5.5 per cent . . .

F165e

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F1665A

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6

If any person who is required by subsection (2) above to hold a licence under that subsection in respect of any premises produces made-wine on those premises without being the holder of a licence under that subsection in respect of those premises F167his doing so shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties) which shall be calculated by reference to the amount of duty charged on the made-wine produced, and the made-wine and all vessels, utensils and materials for producing made-wine found in his possession shall be liable to forfeiture.

F28755A Wine and made-wine of a strength not exceeding 5.5 per cent.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

55BF168 Cider labelled as made-wine.

1

For the purposes of this Act, any liquor which would apart from this section be cider and which—

a

is in an up-labelled container, or

b

has, at any time after 31st December 1996 when it was in the United Kingdom, been in an up-labelled container,

shall be deemed to be made-wine, and not cider.

2

Accordingly, references in this Act to producing made-wine include references to—

a

putting cider in an up-labelled container; or

b

causing a container in which there is cider to be up-labelled.

3

For the purposes of this Act, where any liquor is deemed by this section to be made-wine, it shall be deemed—

a

if it is in an up-labelled container, to be made-wine of the strength that the labelling for the container states or tends to suggest; and

b

if it is no longer in an up-labelled container, to be made-wine of the strength stated or suggested by the labelling for the up-labelled container in which it was contained when it was first deemed b this section to be made-wine.

4

Subsection (3)(a) above has effect subject to any provision that may be made by regulations under section 2(3) above.

5

Where, by virtue of this section, any duty is charged under section 55 above on any liquor, a rebate shall be allowed in respect of the amount of any duty charged on that liquor under section 62 below.

6

For the purposes of this section a container is up-labelled if the labelling for the container states or tends to suggest that the strength of any liquor in that container is or exceeds 8.5 per cent.

7

In this section references to the labelling for any container are references to anything on—

a

the container itself,

b

a label or leaflet attached to or used with the container, or

c

any packaging used for or in association with the container.

56 Power to regulate making of wine and made-wine and provide for charging duty thereon.

1

The Commissioners may with a view to managing the duties on wine and made-wine produced in the United Kingdom for sale make regulations—

a

regulating the production of wine and made-wine for sale, and the issue, . . . F169 and cancellation of excise licences therefor;

b

for determining the duty and the rates thereof and in that connection prescribing the method of charging the duty;

c

prohibiting or restricting the use of wine F170or ciderin the production of made-wine;

d

for securing and collecting the duty;

e

for relieving wine or made-wine from the duty in such circumstances and to such extent as may be prescribed in the regulations.

2

If any person contravenes or fails to comply with any regulation made under this section, F171his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties), and any article in respect of which any person contravenes or fails to comply with any such regulation shall be liable to forfeiture.

57 Mixing of made-wine and spirits in warehouse.

The Commissioners may, subject to such conditions as they see fit to impose, permit the mixing in an excise warehouse with made-wine (whether imported into or produced in the United Kingdom F172or removed to the United Kingdom from the Isle of Man) of duty-free spirits in a proportion not exceeding F17312 litres of alchohol to 1 hectolitre of made-wine, so, however, that the mixture shall not by virtue of this section be raised to a greater strength than F17318·3 per cent.

58 Mixing of wine and spirits in warehouse.

1

The Commissioners may, subject to such conditions as they see fit to impose, permit the mixing in an excise warehouse with wine (whether imported into or produced in the United Kingdom F174or removed to the United Kingdom from the Isle of Man) of duty-free spirits in a proportion not exceeding F175F17612 litres of alcohol to 1 hectolitre of wine, so, however, that the mixture shall not, F176by virtue of this section, be raised to a greater strength than F17622 per cent.

F1772

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

59 Rendering imported wine or made-wine sparkling in warehouse.

F1781

Wine or made-wine which—

a

is imported or is removed to the United Kingdom from the Isle of Man; and

F179b

is wine or made-wine of a strength exceeding 5.5 per cent.

shall not be rendered sparkling, whether by aeration, fermentation or any other process, except in warehouse in accordance with warehousing regulations.

F1802

Where any person contravenes subsection (1) above or is concerned in such a contravention, his contravention or, as the case may be, his being so concerned shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties).

3

All imported wine and imported made-wine rendered or being rendered sparkling in contravention of subsection (1) above, and all machinery, utensils, bottles and materials (including wine or made-wine) used or intended to be used in any process for rendering any wine or made-wine sparkling in contravention of that subsection shall be liable to forfeiture.

60 Repayment of duty on imported wine or made-wine used in the production or manufacture of other beverages, etc.

F1811

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F1821A

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F1812

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

61 Remission or repayment of duty on spoilt wine or made-wine.

1

Where it is shown to the satisfaction of the Commissioners that any wine or made-wine which has been removed from the entered premises of a licensed producer of wine or of made-wine has accidentally become spoilt or otherwise unfit for use and, in the case of wine or made-wine delivered to another person, has been returned to the producer as so spoilt or unfit, the Commissioners shall, subject to compliance with such conditions as they may by regulations impose, remit or repay any duty charged or paid in respect of the wine or made-wine.

2

If any person contravenes or fails to comply with any regulation made under subsection (1) above, F183his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties).

Part V Cider

62 Excise duty on cider.

1

There shall be charged on cider—

a

imported into the United Kingdom; or

b

made in the United Kingdom by a person who is required by subsection (2) below to be registered as a maker of cider,

a duty of excise at the F184rates shown in subsection (1A) below.

F1851A

The rates at which the duty shall be charged are—

a

F297£188.10 per hectolitre in the case of sparkling cider of a strength exceeding 5.5 per cent.;

F186b

F295£43.37 per hectolitre in the case of cider of a strength exceeding 7.5 per cent. which is not sparkling cider; and

c

F296£28.90 per hectolitre in any other case.

2

Subject to subsection (3) below, a person who, on any premises in the United Kingdom, makes cider for sale must be registered with the Commissioners in respect of those premises.

3

The Treasury may by order made by statutory instrument provide for exempting from subsection (2) above makers of cider whose production does not exceed such limit as is specified in the order and who comply with such other conditions as may be so specified.

4

If any person who is required by subsection (2) above to be registered in respect of any premises makes cider on those premises without being registered in respect of them, F187his doing so shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties) which shall be calculated by reference to the amount of duty charged on the cider made, and the cider and all vessels, utensils and materials for making cider found in his possession shall be liable to forfeiture.

5

The Commissioners may with a view to managing the duty on cider made in the United Kingdom make regulations—

a

regulating the making of cider for sale and the registration and cancellation of registration of makers of cider;

b

for determining the duty and the rate thereof and in that connection prescribing the method of charging the duty;

c

for securing and collecting the duty;

d

for relieving cider from the duty in such circumstances and to such extent as may be prescribed in the regulations.

F188e

regulating and, in such circumstances as may be prescribed in the regulations, prohibiting the addition of substances to, the mixing of, or the carrying out of other operations on or in relation to, cider.

6

If any person contravenes or fails to comply with any regulation made under subsection (5) above, F187his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties), and any article in respect of which any person contravenes or fails to comply with any such regulation shall be liable to forfeiture.

F1897

References in this section to making cider shall be construed as including references to producing sparkling cider by rendering cider sparkling; and references in this section to cider made in the United Kingdom, to makers of cider and to making cider for sale shall be construed accordingly.

62AF190 Meaning of “sparkling” etc. in section 62.

1

This section applies for the purposes of section 62 above.

2

Cider which is for the time being in a closed bottle is sparkling if, due to the presence of carbon dioxide, the pressure in the bottle, measured at a temperature of 20 degrees C, is not less than 3 bars in excess of atmospheric pressure.

3

Cider which is for the time being in a closed bottle is sparkling regardless of the pressure in the bottle if the bottle has a mushroom-shaped stopper (whether solid or hollow) held in place by a tie or fastening.

4

Cider which is not for the time being in a closed container is sparkling if it has characteristics similar to those of cider which has been removed from a closed bottle and which, before removal, fell within subsection (2) above.

5

Cider shall be regarded as having been rendered sparkling if, as a result of aeration, fermentation or any other process, it either—

a

falls within subsection (2) above; or

b

takes on characteristics similar to those of cider which has been removed from a closed bottle and which, before removal, fell within subsection (2) above.

6

Cider which has not previously been rendered sparkling by virtue of subsection (5) above shall be regarded as having been rendered sparkling if it is transferred into a closed bottle which has a mushroom-shaped stopper (whether solid or hollow) held in place by a tie or fastening.

7

Cider which is in a closed bottle and has not previously been rendered sparkling by virtue of subsection (5) or (6) above shall be regarded as having been rendered sparkling if the stopper of its bottle is exchanged for a stopper of a kind mentioned in subsection (6) above.

62BF191 Cider labelled as strong cider.

1

For the purposes of this Act, any liquor which would apart from this section be standard cider and which—

a

is in an up-labelled container, or

b

has, at any time after 31st December 1996 when it was in the United Kingdom, been in an up-labelled container,

shall be deemed to be strong cider, and not standard cider.

2

Accordingly, references in this Act to making cider include references to—

a

putting standard cider in an up-labelled container; or

b

causing a container in which there is standard cider to be up-labelled.

3

Where, by virtue of this section, any duty is charged under section 62 above on any cider, a rebate shall be allowed in respect of the amount of any duty charged on that cider under that section otherwise than by virtue of this section.

4

For the purposes of this section—

a

“standard cider” means cider which is not sparkling and is of a strength not exceeding 7.5 per cent.; and

b

“strong cider” means cider which is not sparkling and is of a strength exceeding 7.5 per cent.

5

For the purposes of this section a container is up-labelled if there is anything on—

a

the container itself,

b

a label or leaflet attached to or used with the container, or

c

any packaging used for or in association with the container,

which states or tends to suggest that the strength of any liquor in that container falls within the strong cider strength range.

6

For the purposes of subsection (5) above, a strength falls within the strong cider strength range if it exceeds 7.5 per cent. but is less than 8.5 per cent.

63 Repayment of duty on imported cider used in the production or manufacture of other beverages, etc.

F1921

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F1932

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

64 Remission or repayment of duty on spoilt cider.

1

Where it is shown to the satisfaction of the Commissioners that any cider which has been removed from the entered premises of a registered maker of cider has accidentally become spoilt or otherwise unfit for use and, in the case of cider delivered to another person, has been returned to the maker as so spoilt or unfit, the Commissioners shall, subject to compliance with such conditions as they may by regulations impose, remit or repay any duty charged or paid in respect of the cider.

F1941A

In subsection (1) above the references to a maker of cider include references to any person who is taken for the purposes of section 62 above to be a maker of cider.

2

If any person contravenes or fails to comply with any regulation made under subsection (1) above, F195his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties).

Part VI General Control Provisions

Sale of dutiable alcoholic liquors

64AF274Retail containers of certain alcoholic liquors to be stamped

Schedule 2A to this Act (duty stamps) has effect.

65 Excise licence for dealing wholesale in certain alcoholic liquors.

1

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F196

8

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F197

66. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F198

66AF199 Blending of alcoholic liquors.

1

Subject to subsections (4) to (6) below, a person shall not blend two or more alcoholic liquors—

a

each of which is of a kind mentioned in paragraphs (a) to (e) of section 1(1) above, but

b

not all of which fall within the same one of those paragraphs,

except in an excise warehouse or on premises which, in relation to the liquors blended, are for the time being permitted premises.

2

Subject to subsections (4) to (6) below, a person shall not blend two or more alcoholic liquors which—

a

fall within the same paragraph of section 1(1) above, but

b

are not all of the same alcoholic strength,

except in an excise warehouse or on premises which, in relation to the liquors blended, are for the time being permitted premises.

3

In relation to the blending of particular alcoholic liquors—

a

if the liquor which is the product of the blending is beer, permitted premises are premises which are registered under section 41A above and premises in respect of which a person is registered under section 47 above;

b

if the liquor which is the product of the blending is wine, permitted premises are premises in respect of which a licence under section 54(2) above is held;

c

if the liquor which is the product of the blending is made-wine, permitted premises are premises in respect of which a licence under section 55(2) above is held;

d

if the liquor which is the product of the blending is cider, permitted premises are premises in respect of which a person is registered under section 62 above.

4

Subsections (1) and (2) above do not apply unless the blending is done with a view to offering for sale the liquor which is the product of the blending.

5

Subsections (1) and (2) above do not apply where the liquor which is the product of the blending is intended for consumption on the premises on which the blending takes place.

6

The Commissioners may direct that subsections (1) and (2) above shall not apply to the blending of alcoholic liquors in such circumstances as are specified in the direction.

7

Where a person contravenes subsection (1) or (2) above, the following shall be liable to forfeiture—

a

the liquor which is the product of the blending;

b

all such vessels, utensils and materials for the blending of alcoholic liquors as are found in his possession.

8

In this section any reference to blending liquors includes a reference to otherwise mixing them.

Annotations:
Amendments (Textual)
F199

S. 66A inserted (27.7.1993 with application in relation to the blending or other mixing of alcoholic liquors on or after that date) by 1993 c. 34, s. 5(1)(4).

F28867 Power to regulate keeping of dutiable alcoholic liquors by wholesalers and retailers.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

68. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F200

F28969 Miscellaneous provisions as to wholesalers and retailers of spirits.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

70. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F201

F29071 Penalty for mis-describing liquor as spirits.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F20271A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F20372. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

73. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F204

F29174 Liquor to be deemed wine or spirits.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F299Denatured alcohol

Annotations:
Amendments (Textual)
F299

Words in cross-heading substituted (1.7.2005) by virtue of Finance Act 1995 (c. 4), s. 5(6), Sch. 2 para. 5(d); S.I. 2005/1523, art. 2 (with art. 3)

C2075 Licence or authority to manufacture and deal wholesale in F262denatured alcohol.

1

The Commissioners may authorise any distiller, rectifier or compounder to F262denatured alcohol, and any person so authorised is referred to in this Act as an “authorised F260denaturer”.

2

No person other than an authorised F260denaturer shall F260denatureF261dutiable alcoholic liquor or deal wholesale in F262denatured alcohol unless he holds an excise licence as a F260denaturer under this section.

F2053

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F2064

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5

F207Where any person, not being an authorised F260denaturer, F260denaturesF261dutiable alcoholic liquor otherwise than under and in accordance with a licence under this section F208his doing so shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties).

6

The Commissioners may at any time revoke or suspend any authorisation or licence granted under this section.

7

For the purposes of this section, dealing wholesale means the sale at any one time to any one person of a quantity of F262denatured alcohol of not less than F20920 litres or such smaller quantity as the Commissioners may by regulations specify.

F21076. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

C2177 Power to make regulations relating to F266denatured alcohol.

1

The Commissioners may with a view to the protection of the revenue make regulations—

a

regulating the F264denaturing of F265dutiable alcoholic liquor and the supply, storage, removal, sale, delivery, receipt, use and exportation or shipment as stores of F266denatured alcohol;

F268b

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

c

permitting F265dutiable alcoholic liquor to be F263denatured in warehouse;

d

permitting F211dealing wholesale (within the meaning of section 75 above) without a licence in such F266denatured alcohol as may be specified in the regulations;

C22e

regulating the importation, receipt, removal, storage and use of F265dutiable alcoholic liquor for F264denaturing;

f

regulating the storage and removal of substances to be used in F264denaturingF265dutiable alcoholic liquor;

g

prescribing the manner in which account is to be kept of stocks of F266denatured alcohol in the possession of authorised or licensed F263denaturers and of retailers of F266denatured alcohol;

h

for securing any duty chargeable in respect of F266denatured alcohol of any class.

2

Different regulations may be made under this section with respect to different classes of F266denatured alcohol or different kinds of F266denatured alcohol of any class F212and, without prejudice to the generality of subsection (1) above, regulations under this section may—

a

provide for the imposition under the regulations of conditions and restrictions relating to the matters mentioned in that subsection, and

F267aa

frame any provision of the regulations with respect to the supply, receipt or use of denatured alcohol by reference to matters to be contained from time to time in a notice published in accordance with the regulations by the Commissioners and having effect until withdrawn in accordance with the regulations; and

b

impose or provide for the imposition by regulations of requirements on authorised or licensed F263denaturers and on retailers of F266denatured alcohol to keep and preserve records relating to their businesses as such and to produce them to an officer when required to do so for the purpose of allowing him to inspect them, to copy or take extracts from them or to remove them at a reasonable time and for a reasonable period.

F2132A

Where any documents removed under the powers conferred by subsection (2)(b) above are lost or damaged the Commissioners shall be liable to compensate their owner for any expenses reasonably incurred by him in replacing or repairing the documents.

3

If any person contravenes or fails to comply with any regulation under this section, F214or with any condition, restriction or requirement imposed under such a regulation, F215his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties).

4

If, save as permitted by any regulation under this section, any person F216deals wholesale (within the meaning of section 75 above) inF266denatured alcohol otherwise than under and in accordance with a licence under section 75 F217... above, F218his doing so shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties).

5

Any F265dutiable alcoholic liquor or F266denatured alcohol in respect of which F219there is such a contravention or failure to comply as is mentioned in subsection (3) above or any such dealing as is mentioned in subsection (4) above shall be liable to forfeiture.

6

Nothing in any regulations made under this section shall prejudice the operation of the M4Methylated Spirits (Sale by Retail) (Scotland) Act 1937.

78F271Defaults in respect of denatured alcohol.

1

This subsection applies if, at any time when an account is taken and a balance struck of the quantity of any kind of denatured alcohol in the possession of an authorised or licensed denaturer, there is a difference between—

a

the quantity (“the actual amount”) of the dutiable alcoholic liquor of any description in the denatured alcohol in his possession; and

b

the quantity (“the proper amount”) of dutiable alcoholic liquor of that description which, according to any such accounts as are required to be kept by virtue of any regulations under section 77 above, ought to be in the denatured alcohol in his possession.

2

Subsection (1) above shall not apply if the difference constitutes—

a

an excess of the actual amount over the proper amount of not more than 1 per cent. of the aggregate of—

i

the quantity of dutiable alcoholic liquor of the description in question in the balance of dutiable alcoholic liquor struck when an account was last taken; and

ii

the quantity of dutiable alcoholic liquor of that description which has since been lawfully added to the denaturer’s stock;

or

b

a deficiency such that the actual amount is less than the proper amount by not more than 2 per cent. of that aggregate.

3

If, where subsection (1) above applies, the actual amount exceeds the proper amount, the relevant amount of any dutiable alcoholic liquor of the description in question which is in the possession of the denaturer shall be liable to forfeiture; and for this purpose the relevant amount is the amount corresponding to the amount of the excess or such part of that amount as the Commissioners consider appropriate.

4

If, where subsection (1) above applies, the actual amount is less than the proper amount, the denaturer shall, on demand by the Commissioners, pay on the amount of the deficiency, or on such part of it as the Commissioners may specify in the demand, the duty payable on dutiable alcoholic liquor of the description comprised in the deficiency.

5

If any person—

a

supplies to another, in contravention of any regulations under section 77 above, any denatured alcohol containing dutiable alcoholic liquor of any description, or

b

uses any such denatured alcohol in contravention of any such regulations,

that person shall, on demand by the Commissioners, pay on the amount of dutiable alcoholic liquor of that description comprised, at the time of its supply or use, in the denatured alcohol that is so supplied or used, or on such part of it as the Commissioners may specify, the duty payable on dutiable alcoholic liquor of that description.

6

Any supply of denatured alcohol to a person who—

a

by virtue of any regulations under section 77 above is prohibited from receiving it unless authorised to do so by or under the regulations, and

b

is not so authorised in the case of the denatured alcohol supplied to him,

shall be taken for the purposes of subsection (5) above to be a supply in contravention of those regulations.

7

A demand made for the purposes of subsection (4) or (5) above shall be combined, as if there had been a default such as is mentioned in that section, with an assessment and notification under section 12 of the M8Finance Act 1994 (assessments to excise duty) of the amount of duty due in consequence of the making of the demand.

C2379 Inspection of premises, etc.

Without prejudice to any other power conferred by the Customs and Excise Acts 1979, an officer may in the daytime enter and inspect the premises of any person authorised by regulations made under section 77 above to receive F269denatured alcohol, and may inspect and examine any F269denatured alcohol thereon and take samples of any F269denatured alcohol or of any goods containing F269denatured alcohol, paying a reasonable price for each sample.

C2480 Prohibition of use of F270denatured alcohol, etc. as a beverage or medicine.

1

If any person—

a

prepares or attempts to prepare any liquor to which this section applies for use as a beverage or as a mixture with a beverage; or

b

sells any such liquor, whether so prepared or not, as a beverage or mixed with a beverage; or

c

uses any such liquor or any derivative thereof in the preparation of any article capable of being used wholly or partially as a beverage or internally as a medicine; or

d

sells or has in his possession any such article in the preparation of which any such liquor or any derivative thereof has been used; or

e

except as permitted by the Commissioners and in accordance with any conditions imposed by them, purifies or attempts to purify any such liquor or, after any such liquor has once been used, recovers or attempts to recover the spirit or alcohol contained therein by distillation or condensation or in any other manner,

he shall be liable on summary conviction to a penalty of F220level 3 on the standard scale and the liquor in respect of which the offence was committed shall be liable to forfeiture.

2

Nothing in this section shall prohibit the use of any liquor to which this section applies or any derivative thereof—

a

in the preparation for use as a medicine of sulphuric ether, chloroform, or any other article which the Commissioners may by order specify; or

b

in the making for external use only of any article sold or supplied in accordance with regulations made by the Commissioners under section 77 above; or

c

in any art or manufacture,

or the sale or possession of any article permitted to be prepared or made by virtue of paragraph (a) or (b) above where the article is sold or possessed for use as mentioned in that paragraph.

3

The liquors to which this section applies are F270denatured alcohol, methyl alcohol, and any mixture containing F270denatured alcohol or methyl alcohol.

Still licences

81. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F221

F29282 Power to make regulations with respect to stills.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

83. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F222

Relief from, and payment by instalments of, liquor licence duties

84. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F223

85. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F224

86 Reduced duty on certain part-year licences.

1

This section applies to an excise licence granted under the following provisions of this Act for the following purposes respectively, that is to say—

a

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F225

b

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F226

2

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F227

3

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F228

87. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F229

Part VII Miscellaneous

89. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F230

General

90 Regulations.

1

Any power to make regulations conferred by this Act shall be exercisable by statutory instrument.

2

A statutory instrument containing regulations under this Act shall be subject to annulment in pursuance of a resolution of either House of Parliament.

91 Directions.

Directions given under any provision of this Act may make different provision for different circumstances and may be varied or revoked by subsequent directions thereunder.

92 Consequential amendments, repeals and saving and transitional provisions.

C251

The enactments specified in Schedule 3 to this Act shall be amended in accordance with the provisions of that Schedule.

C252

The enactments specified in Parts I and II of Schedule 4 to this Act are hereby repealed to the extent specified in the third column of that Schedule and the instrument specified in Part III of that Schedule is hereby revoked to the extent so specified.

3

Any provision of this Act relating to anything done or required or authorised to be done under or by reference to that provision or any other provision of this Act shall have effect as if any reference to that provision, or that other provision, as the case may be, included a reference to the corresponding provision of the enactments repealed by this Act.

4

Where an offence has been committed under section 129 of the M5Customs and Excise Act 1952 proceedings may be taken under section 51 of this Act in respect of the continuance of the offence under section 129 after the commencement of this Act in the same manner as if the offence had been committed under section 51 of this Act.

5

Where an offence has been committed under section 102 of the M6Customs and Excise Act 1952 before the commencement of this Act subsection (4) of section 21 of this Act shall apply on a conviction of an offence under that section as it would apply had the earlier offence been committed under section 21.

F2316

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F232

8

Nothing in this section shall be taken as prejudicing the operation of sections 15 to 17 of the M7Interpretation Act 1978 (which relate to the effect of repeals).

93 Citation and commencement.

1

This Act may be cited as the Alcoholic Liquor Duties Act 1979 and is included in the Acts which may be cited as the Customs and Excise Acts 1979.

2

This Act shall come into operation on 1st April 1979.