Draft Alcohol Duty legislation (to be included in a future Finance Bill) is expected to repeal and replace the Alcohol Liquor Duties Act 1979. The draft legislation will change the duty structure for alcoholic products, creating a standardised series of tax bands based on alcohol by volume.
Alongside the draft legislation, the Warehousekeeper and Owners of Warehoused Goods Regulations, SI 1999/1278 are expected to be revoked, reports the Freight Industry Times. Those Regulations require owners of spirits, beer and cider to be registered with HMRC to own those goods in a third-party excise warehouse. This will be a simplification measure for producers and warehouse operators. All production will be deemed to take place in the ‘drinks factory’ rather than spirit producers being required to operate under excise warehousing.
Commenting on the changes, excise duties consultant, Alan Powell, said: ‘The measure will lighten the load on the warehouse industry and eliminate wasted resources on the part of HMRC on matters that are of no practical use, particularly where there is an imperative from the government for regulatory simplification and removal of red tape. This is excellent news for the entire industry!’
The duty structure and rates changes are expected to take effect from Royal Assent to Finance Act 2023, but the approvals and other procedures are likely to come into effect later in 2023.
Draft Alcohol Duty legislation (to be included in a future Finance Bill) is expected to repeal and replace the Alcohol Liquor Duties Act 1979. The draft legislation will change the duty structure for alcoholic products, creating a standardised series of tax bands based on alcohol by volume.
Alongside the draft legislation, the Warehousekeeper and Owners of Warehoused Goods Regulations, SI 1999/1278 are expected to be revoked, reports the Freight Industry Times. Those Regulations require owners of spirits, beer and cider to be registered with HMRC to own those goods in a third-party excise warehouse. This will be a simplification measure for producers and warehouse operators. All production will be deemed to take place in the ‘drinks factory’ rather than spirit producers being required to operate under excise warehousing.
Commenting on the changes, excise duties consultant, Alan Powell, said: ‘The measure will lighten the load on the warehouse industry and eliminate wasted resources on the part of HMRC on matters that are of no practical use, particularly where there is an imperative from the government for regulatory simplification and removal of red tape. This is excellent news for the entire industry!’
The duty structure and rates changes are expected to take effect from Royal Assent to Finance Act 2023, but the approvals and other procedures are likely to come into effect later in 2023.
