UK Alcohol Duty

During her Autumn Statement (30th October 2024), The Chancellor, Rachel Reeves, announced important changes to the UK’s Alcohol Duty rates.

  • On 1st February 2025, alcohol duty on non-draught products will increase in-line with the 2nd quarter 2025 forecasted RPI inflation rate of 3.65%
  • The temporary easement of wine alcohol duty bands will cease on 1st February 2025

In 2024, under the previous Government’s ‘wine easement’, all wines with alcohol levels between 11.5% and 14.5% ABV are taxed as if they contain 12.5% ABV. This transitional measure, which was introduced to help the industry adapt to the broader reform of the alcohol duty system, expires on 1st February 2025, at which point wines will be subject to variable duty rates that scale with alcohol strength. So, starting from 1st February 2025, (non-draught) UK alcohol duty will be calculated based on alcohol by volume (ABV) in a tiered structure of incremental increases each 0.5% ABV.

The revised rates of alcohol duty on non-draught products, effective from 01.02.25, are:

  • £25.67 per litre of alcohol in the product for duty on spirits, wine and other fermented products at least 3.5% but less than 8.5% alcohol by volume
  • £29.54 per litre of alcohol in the product for duty on all alcoholic products at least 8.5% but not exceeding 22% alcohol by volume
  • £32.79 per litre of alcohol in the product for duty on all alcoholic products exceeding 22% alcohol by volume

We continue to look at how this will affect pricing and invoicing. As always, we will commit to continue to seek lower ABV wines (where quality is not affected) and keep you updated throughout.

Wine % ABVDuty per bottle
(2024 – 31.01.25)
Duty per bottle from 01.02.2025Difference per bottle £Difference %
8.5£1.82£1.88£0.063.3
9.0£1.92£1.99£0.073.6
9.5£2.03£2.10£0.073.4
10.0£2.14£2.22£0.083.7
10.5£2.24£2.33£0.094
11.0£2.35£2.43£0.093.4
11.5£2.67£2.54-£0.12-5
12.0£2.67£2.65-£0.010
12.5£2.67£2.76£0.104
13.0£2.67£2.88£0.218
13.5£2.67£2.99£0.3212
14.0£2.67£3.10£0.4316
14.5£2.67£3.21£0.5420
15.0£3.21£3.32£0.114

The Above Table Shows Product Modelling for Wine (WSTA): New Rates from 1 February 2025 to incorporate the withdrawal of the temporary easement (Uprated by 3.65%, the forecast RPI rate for Q2 2025)

Government Website Resources:
Further information on Alcohol Duty can be found online at *https://www.gov.uk/government/publications/changes-to-the-rates-of-alcohol-duty/alcohol-duty-uprating
*https://www.gov.uk/government/publications/changes-to-the-rates-of-alcohol-duty