The Complex Reality of UK Duty

The 1^st of February saw the final part in the biggest shake-up of the alcohol excise duty system in recent times, laments Purchasing Director Stephen Crosland. Previously, still, sparkling and fortified wines all had their own clear duty charges. Still wine, for example, was charged in a wide band, with those from 8.5% ABV up to 15% charged the same amount of duty £2.23.

The previous government conjured up the idea to charge by degree of alcohol back in October 2021, when then-Chancellor Rishi Sunak announced the move, meaning the higher the strength, the higher the duty. This is a system that works well for spirits and beer where the alcohol levels can be precisely controlled but less so for wines. Wine is subject to the vagaries of weather conditions, which in turn changes the amount of sugar in the grape must and therefore the final alcohol level.

This means the alcoholic strength of a wine can change from vintage to vintage and even within a vintage depending on the exact final blend used. To help with the change to the system, an easement was introduced in 2023, where wines between 11.5% and 14.5% were charged at the same rate. This easement period is over, as of the 1^st February 2025, now for a wine labelled 11.5% ABV you will pay £2.55 per bottle plus VAT, while one at 14.5% ABV is charged at £3.21, again, plus VAT.

The stated intention was to simplify the system, but the result has been to introduce a lot more complexity in terms of checking bottles and ensuring pricing is correct. You will probably notice it most when you’re charged for duty on En Primeur wines; whereas previously they would have been at the same rate, you’ll notice differences between wines now. On all 14.5% wine you’ll pay an extra £1.18 including VAT per bottle than you did a year ago! Perhaps the answer is to drink German Riesling, as a delicious Mosel Kabinett at 7.5% will only attract £1.44 plus VAT in duty!

Duty per 75cl bottle £