Budget 2021 – Alcohol excise duty rates

The UK Chancellor delivered his autumn budget statement today.

Recent press reports had suggested that the UK government had plans to change the structure of UK alcohol excise duties, and the Chancellor did announce that there will be a consultation about a radical restructuring of the UK’s alcohol taxation. In particular, it is proposed to tax standard-strength  sparkling wines (currently £381.15 per Hectolitre) i.e. including Champagne, Prosecco, Cava and Sekt at the same excise duty rate as that for standard-strength still wine (£297.57 per Hectolitre).  Rather disappointingly, however the alcohol rates look likely to remain the same until that exercise is completed, but in the meantime the UK excise duty rates will be “frozen” until February 2023.

Other changes are also being proposed including changes to the tax rates for beers and ciders.