EXPLANATORY NOTE
(This note is not part of the Regulations)

These Regulations amend section 4 of the Finance Act 1995 (alcoholic ingredients relief). That section sets out conditions that need to be met in order to claim the repayment of duty on alcoholic liquor that has been incorporated into certain beverages or food products or has been converted into vinegar.

Regulation 1 provides for commencement and application; the Regulations apply where alcoholic liquor is used as an ingredient in the production or manufacture of certain products or converted into vinegar on or after 1st February 2016.

Regulation 2 amends section 4 so that claimants are no longer restricted to wholesaler manufacturers, there is no minimum amount for a repayment claim and except as the Commissioners may otherwise allow, the time limit for making a claim is no later than 3 years after the end of the period of 3 months during which the liquor was used.

These Regulations implement Article 27(1)(c) and (f) of Directive 92/83/EEC of 19th October 1992 on the harmonisation of the structures of excise duties on alcohol and alcoholic beverages6.

A Tax Information and Impact Note covering this instrument is available on the gov.uk website at https://www.gov.uk/government/collections/tax-information-and-impact-notes-tiins.