UK Alcohol Duty 2025–2026: Rates After the Reform, Draught Relief and the End of the Wine Easement

UK Alcohol Duty 2025–2026: Rates After the Reform, Draught Relief and the End of the Wine Easement
Contents
  1. The UK Alcohol Duty reform — what changed from August 2023
  2. UK alcohol duty rates — from 1 February 2025
  3. Draught Relief — lower rates for draught beer and cider
  4. The end of the wine easement — from 1.02.2025
  5. Who must account for Alcohol Duty in the UK
  6. Small Producer Relief
  7. Frequently asked questions (FAQ)
  8. How we help
  9. Sources

The UK's alcohol duty system underwent a thorough reform in August 2023 — and further significant changes took effect on 1 February 2025. This article is for importers of alcohol into the UK, producers, distributors and customs agents accounting for Alcohol Duty under current HMRC rules.

The UK Alcohol Duty reform — what changed from August 2023

Until 1 August 2023, duty was calculated separately for each category (wine, beer, whisky). After the reform, a single logic applies: duty depends on alcohol content (ABV) and is charged per litre of pure alcohol (LPA):

Duty = product volume (litres) × ABV (%) × rate £/LPA

Products below 1.2% ABV are exempt from Alcohol Duty (£0.00).

UK alcohol duty rates — from 1 February 2025

On 1 February 2025, HMRC updated the rates by RPI (3.65%):

Product categoryABV bandRate (£/LPA)
All productsup to 1.2%£0.00
All products1.2%–3.4%£9.61
Beer3.5%–8.4%£21.78
Wine, spirits, other fermented products3.5%–8.4%£25.67
Cider (still)3.5%–8.4%£10.02
All products8.5%–22%£29.54
All productsabove 22%£32.79

Example: a 0.75 l bottle of wine, 13% ABV: 0.75 × 13% × £25.67 = £2.50 duty (from 1.02.2025).

Rates from 1 February 2026

On 1 February 2026, rates rose again by RPI (3.66%). Source: gov.uk — Alcohol Duty uprating:

Product categoryABV bandRate (£/LPA) from 1.02.2026
All productsup to 1.2%£0.00
All products1.2%–3.4%£9.96
Beer3.5%–8.4%£22.58
Wine, spirits, other fermented products3.5%–8.4%£26.61
Cider (still)3.5%–8.4%£10.39
All products8.5%–22%£30.62
All productsabove 22%£33.99
Annual uprating: Alcohol Duty rates are uprated by the RPI index on 1 February each year. Plan your budgets to account for the annual increases.

Draught Relief — lower rates for draught beer and cider

Draught Relief is a relief for hospitality venues. Products from containers of at least 20 litres connected to a dispense system qualify for the reduced rate.

Product categoryABV bandDraught rate (£/LPA) from 1.02.2026
All draught productsup to 3.4%£8.58
Draught cider (still)3.5%–8.4%£8.95
Draught cider (sparkling)3.5%–5.4%£8.95
Draught beer, wine, spirits3.5%–8.4%£19.45
Draught sparkling cider5.5%–8.4%£19.45

Draught Relief means a reduction of around 14% compared to the standard rate (e.g. £19.45 vs £22.58 for beer at 3.5–8.4% ABV from 1.02.2026).

The end of the wine easement — from 1.02.2025

The wine easement was a transitional 18-month relief period (from August 2023) for wine at 11.5–14.5% ABV, treated as a product with a fixed ABV of 12.5%. It expired on 1 February 2025 — from that date, every wine is accounted for based on its actual ABV as stated on the label. Wines at the upper end of the range (13.5–14.5%) pay higher duty than during the transitional period. Importers must verify the ABV of every batch.

Who must account for Alcohol Duty in the UK

  • Alcohol producers in the UK above the production thresholds
  • Importers of alcohol from abroad (including the EU/Poland) — duty becomes due on release for free circulation in the UK
  • Holders of tax warehouses (Approved Warehousekeeper) — movement under duty suspension

Importing alcohol from Poland into the UK is subject to duty (where applicable), import VAT (Postponed VAT Accounting) and Alcohol Duty. Customs declarations are submitted exclusively through CDS (CHIEF has been closed).

Small Producer Relief

Alongside Draught Relief there is also Small Producer Relief — a relief for small producers (below the production thresholds), with a lower, tapered rate. Details: gov.uk — Small Producer Relief.

Frequently asked questions (FAQ)

Do the rates change every year? Yes — an annual RPI uprating on 1 February. The next update is expected on 1 February 2027.

How do I calculate the duty on a bottle of wine from Poland? Volume × ABV × rate £/LPA. Example: 0.75 l, 13% ABV, from 1.02.2026 = 0.75 × 0.13 × £26.61 = £2.59.

What was the wine easement? A simplification treating wine at 11.5–14.5% ABV as if it were 12.5%. It expired on 1 February 2025.

What containers qualify for Draught Relief? At least 20 litres, connected to a dispense system. Bottles and cans do not qualify.

Does UK duty apply to alcohol imported into Poland from the UK? No. Exports from the UK to Poland are subject to Polish/EU excise rules — check podatki.gov.pl and EMCS (PUESC).

How we help

Our customs agency handles PL–UK alcohol import and export: calculating UK duty at the quoting stage, CDS customs declarations, verifying ABV and tariff classification, and advisory on registration with HMRC and tax warehouses. Contact: agencjacelna.uk

Sources

Agencja Celna UK team

Written by a customs agency registered with CDS (UK EORI), based on gov.uk, HMRC, the EU customs tariff (TARIC) and Polish law. This article is for information only — check the current rules before clearance or ask us about your situation.

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