Budget Analysis Webinar: Find out how the budget will impact you

Pints of Beer

By Armstrong Watson

27th October 2021

Autumn Budget 2021 - Changes to Alcohol Duty

Subscribe

Sunak established a five-step plan to overhaul an Alcohol Duty system which is currently “outdated, complex and full of historical anomalies”. The number of main duty rates will be cut from fifteen to six with an aim to end what the Chancellor referred to as an era of cheap, high-strength drinks but taxing stronger drinks at a higher rate of the tax

New rates will be introduced for low strength drinks below 3.5% ABV, as an incentive for manufacturers to develop new products at lower ABVs, and changes will be made to reflect current consumer trends by levying no premium on sparkling wines, irrespective of where they are produced. Additionally, craft producers making drinks of under 8.5% will benefit from reduced rates.

In a move to further support a sector struggling to recover from the COVID pandemic, pubs will benefit by a planned increase of duty on spirits next year being cancelled, and there will be a lower rate of Duty on draught beer and cider which should reduce the price of a pint by 3p. However, to dampen enthusiasm around this, some pub groups have already warned the costs of wage increases could add 30 pence to the cost of a pint in future.

Watch our Autumn Budget webinar or listen to our podcast for further analysis.

For support and advice on any tax issues surrounding your hospitality business, please get in touch.

Related news

Infrastructure

Autumn Budget 2021 - Improving the infrastructure of the UK

27th October 2021

Corporate Tax Highlights

Autumn Budget 2021 - Tax highlights for Larger Businesses

27th October 2021

UK Parliament

Autumn Budget 2021 - Initial Reaction

27th October 2021

Personal taxes

Autumn Budget 2021 - Personal and employment taxes

27th October 2021

Hospitality Business

Autumn Budget 2021 - The Hospitality Sector

27th October 2021

All content © 2020 Armstrong Watson. All Rights Reserved. Website by Simon Pighills.

Armstrong Watson LLP is a limited liability partnership registered in England and Wales, number OC415608. The registered office is James Watson House, Montgomery Way, Rosehill, Carlisle, CA1 2UU where a list of members is kept. Armstrong Watson LLP is regulated by the Institute of Chartered Accountants in England and Wales for a range of investment business activities. Unless otherwise indicated, either expressly or by the context, we use the word “partner” to describe a member of Armstrong Watson LLP or an employee of Armstrong Watson LLP in their capacity as such.

Armstrong Watson Audit Limited is registered to carry out audit work in the UK by the Institute of Chartered Accountants in England and Wales. Registered as a limited company in England and Wales, number 8800970. The registered office is James Watson House, Montgomery Way, Rosehill, Carlisle, CA1 2UU. Armstrong Watson Audit is a trading style of Armstrong Watson Audit Limited.

Armstrong Watson Financial Planning Limited is authorised and regulated by the Financial Conduct Authority. Firm reference number 542122. Registered as a limited company in England and Wales, number 7208672. The registered office is James Watson House, Montgomery Way, Rosehill, Carlisle, CA1 2UU. Armstrong Watson Financial Planning & Wealth Management is a trading style of Armstrong Watson Financial Planning Limited. Armstrong Watson Trustees Limited is a limited company registered in England and Wales, number 84495656. The registered office is James Watson House, Montgomery Way, Rosehill, Carlisle, CA1 2UU.

MyRetirement is a trading style of Armstrong Watson Financial Planning Limited.

Armstrong Watson is a trading style of Armstrong Watson LLP, Armstrong Watson Audit Limited and Armstrong Watson Financial Planning Limited.