Part III Beer

F1F6Beer from small breweries

Annotations:
Amendments (Textual)
F1

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

F6

S. 36A cross-heading substituted (1.10.2011) by Finance Act 2011 (c. 11), s. 14(3)(7)

36F Rate of F4general beer duty for small brewery beer F7(other than lower strength 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 F5general beer duty in the case of that beer (“the brewery rate”) is determined in accordance with this section F8, unless the beer is within section 36(1AA)(za) (rate for lower strength beer).

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.

F29A

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) F3, (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.