UK Alcohol Duty Calculator (2023 Reform)

The reformed alcohol duty system based on alcoholic strength (ABV) took effect on 1 August 2023. This replaced the previous system where different product categories (beer, wine, spirits) had separate rate schedules not consistently based on ABV.

The principle is now 'duty is proportional to alcohol content'. All products are taxed per litre of pure alcohol, with rates increasing with strength. This means stronger products pay proportionally more duty regardless of whether they are beer, wine, or spirits.

Draught Relief reduces alcohol duty on beer and cider sold on draught in licensed premises (pubs, bars, restaurants). Products served from containers of 20 litres or more receive a reduced duty rate — approximately 9% lower for standard beer. This supports the on-trade against supermarket competition.

Still wine in the 11.5–14.5% ABV band was initially taxed at a flat rate (transitional period). From February 2025, wine was moved to ABV-based pricing like beer and spirits. This benefits lower-strength wines and increases duty on high-strength wines.

Duty = Volume (litres) × ABV (as decimal) × rate per litre of pure alcohol. For example, a 70cl bottle of 40% spirits contains 0.28 litres of pure alcohol. At £31.64/litre, the duty is £8.86.

Yes — VAT at 20% is charged on the duty-inclusive price. So the consumer price includes both the duty and VAT on the duty. This 'tax on tax' effect means the effective tax burden on alcohol is higher than the headline duty rate suggests.

Small breweries and cider makers producing under a certain threshold (250,000 litres pure alcohol equivalent) benefit from reduced duty rates under Small Producer Relief (SPR). This replaced the old Small Breweries Relief and was extended to cider and wine producers from August 2023.

UK alcohol duty rates are among the highest in Europe. A typical pint of beer in the UK includes approximately 50–60p in duty. The UK duty on spirits is roughly double the EU average. This explains why UK consumers pay significantly more for alcohol than continental European consumers.