Part 2Alcohol Duty
Chapter 4Other reliefs and exemptions
Spirits
I5I676Imported medical articles
1
Alcohol duty is not charged on spirits contained in medical articles imported into the United Kingdom.
2
“Medical article” means an article recognised by the Commissioners as being an article used for medical purposes.
I4I777Flavourings
1
Alcohol duty is not charged on spirits contained in food and drink flavourings.
2
In this section—
“food and drink flavourings” means any qualifying flavourings which 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%;
- a
“qualifying flavourings” means any products falling within commodity code 3302 of the customs tariff established by regulations made under section 8 of TCTA 2018.
I1I878Authorised use for certain purposes
1
This section applies where a person proposes to use spirits, on which alcohol duty is chargeable, either—
a
in the manufacture or preparation of medical articles, or
b
for scientific purposes.
2
This section also applies where—
a
a person proposes to use spirits, on which alcohol duty is chargeable, for the purposes of art or manufacture (other than the manufacture of medical articles), and
b
the Commissioners are satisfied that denatured alcohol would not be suitable for that use.
3
The Commissioners may authorise the person to receive the spirits, and permit the delivery of the spirits from relevant premises to that person, without payment of the alcohol duty.
4
In subsection (3), “relevant premises” means—
a
an excise warehouse, or
C1b
premises in respect of which a person is approved (including premises on which a person is authorised to hold alcoholic products without payment of duty) under section 82.
5
An authorisation under this section may be given subject to the conditions (if any)—
a
specified by the Commissioners in a notice published by them;
b
imposed by them in a particular case.
6
If a person fails to comply with a condition in respect of an authorisation, the failure attracts a penalty under section 9 of FA 1994.
7
Subsection (8) applies if—
a
the spirits are delivered to the person mentioned in subsection (3), and
b
the spirits are used otherwise than for the purpose in respect of which the authorisation was given.
8
The Commissioners—
a
may assess as being alcohol duty due from the person an amount equal to the alcohol duty that would have been charged on the spirits if, at the time of delivery, no authorisation under this section had been given, and
b
must notify that person or the person’s representative of the assessment.
9
In this section “medical article” has the same meaning as in section 76.
I3I979Imported goods not for human consumption
1
The Commissioners may remit any alcohol duty chargeable on spirits imported into the United Kingdom at a time when the spirits are contained in goods that are not for human consumption.
2
If it turns out that the goods containing spirits are for human consumption, the Commissioners—
a
may assess as being alcohol duty due from the relevant person an amount equal to the alcohol duty that would (apart from subsection (1)) have been charged on the goods, and
b
must notify the relevant person or that person’s representative of the assessment.
3
For the purposes of subsection (2), references to “the relevant person” are references to the importer.
I2I1080Restrictions on use of certain articles
1
If a person makes unauthorised use of an article to which this section applies—
a
that conduct attracts a penalty under section 9 of FA 1994, and
b
the article is liable to forfeiture.
2
This section applies to—
a
an article containing spirits which are exempt under section 76 from the charge to alcohol duty;
b
an article in respect of which spirits were used in the manufacture or preparation, where remission of alcohol duty on the spirits was obtained under section 78.
3
A person makes “unauthorised use” of an article for the purposes of this section if—
a
the person uses the article other than for medical or scientific purposes, and
b
the person has not complied with the requirements under subsection (4).
4
The requirements are that—
a
the person must obtain the written consent of the Commissioners to the use of the article other than for medical or scientific purposes, and
b
the person must pay to the Commissioners an amount equal to the duty shortfall.
5
In this section, the “duty shortfall” means—
a
the difference between the duty charged on the spirits contained in, or used in the manufacture or preparation of, the article, and
b
the duty which would have been chargeable had the article not been exempt under section 76 or the duty had not been remitted under section 78.
6
The Commissioners may make regulations for the purpose of enforcing this section.
7
Regulations under subsection (6) may, in particular, require a person carrying on any trade in which spirits or articles containing, manufactured or prepared with spirits are, in the opinion of the Commissioners, likely to be or have been used—
a
to give and verify particulars of the materials which the person is using or has used, or the articles the person has sold;
b
to produce any documents (of whatever nature) relating to such materials or articles.
8
If a person contravenes or fails to comply with any regulation made under subsection (6), the contravention or failure attracts a penalty under section 9 of FA 1994.
9
In this section, a reference to an article includes a reference to any part of that article.