Southampton Office - 02381 800200 
 Winchester Office - 01962 790607 


Autumn Budget 2021 - Alcohol and Tobacco Duty
28/10/2021

As part of the Budget measures the Chancellor announced, to a big cheer, that the planned duty rates on beers, spirits, wines and ciders expected to come into effect from midnight on Budget Day will be cancelled.

The Chancellor also announced major changes to the current duty system are expected to be introduced from 1 February 2023. This will result in a reduction in the number of main alcohol duty rates from fifteen to six with stronger drinks attracting higher rates. The changes will also fix anomalies. For example, sparkling wine currently attracts higher duty rates than still wines of equivalent strength. The Chancellor also announced proposals for a new Small Producer Relief to help encourage small, innovative craft producers.

The duty rates on tobacco products were increased by 2% above the rate of inflation (based on RPI) effective from 6pm on 27 October 2021. The Chancellor also announced that the duty for hand-rolling tobacco will increase by an additional 6% above RPI and the Minimum Excise Tax (MET) by 3% above RPI at the same time. The government is committed to maintaining high tobacco duty rates as a tool to reduce smoking.


Southampton

39 Chapel Road

West End

Southampton

Hampshire

SO30 3FG

 

Tel: 02381 800200

admin@poolemead.co.uk

Winchester

Tremain House, 8 Maple Drive

Kings Worthy

Winchester

Hampshire

SO23 7NG

 

Tel: 01962 790607

enquiries@pmawin.com

Membership

 

 

Newsfeed Search