UK alcohol duty is charged on strength, with rates set per litre of pure alcohol. Since the 2023 reform, the stronger a drink is, the more duty it carries — across every category.
For trade buyers, duty is usually the largest single component of a wholesale price after the product itself, which is why understanding it changes how you read a quote.
How does UK alcohol duty work?
Duty is calculated on the litres of pure alcohol in a product, not on the volume of liquid. A 700ml bottle at 40% ABV contains 0.28 litres of pure alcohol, and duty applies to that figure.
The 2023 reform replaced separate category-based systems with a single strength-based structure, so beer, wine, spirits and cider are now taxed on the same principle.
When is duty paid?
Duty becomes payable at the duty point — when goods leave a bonded warehouse for UK consumption. Before that point, stock can move between bonded facilities in suspense.
This is why AWRS approval matters: the scheme covers wholesalers trading alcohol at or after the duty point. See what AWRS is.
What is a bonded warehouse?
A bonded warehouse is an HMRC-approved facility where alcohol is stored with duty suspended. Duty is paid only when goods are released for UK sale.
For exporters this matters commercially: stock leaving the UK under bond does not attract UK duty at all, which is why export pricing and domestic pricing differ so sharply.
Does duty apply to exports?
No. Alcohol exported from the UK is not subject to UK excise duty, provided it moves under the correct customs and excise procedures.
The destination country will apply its own duty and import taxes on arrival. Budget for those, not for UK rates.
What about small producer relief?
Reduced rates apply to qualifying small producers of lower-strength products. The relief scales with production volume, so the smallest producers pay the least per litre of alcohol.
If you buy from small breweries or distilleries, their pricing may reflect this — and it can change if they grow past a threshold.
How does duty affect wholesale pricing?
| Factor | Effect on trade price |
|---|---|
| Higher ABV | Higher duty per unit |
| Export under bond | No UK duty |
| Small producer relief | Lower duty for qualifying producers |
| Duty-paid stock | Duty already in the price |
When comparing quotes, always confirm whether a price is duty-paid or under bond. The two are not comparable.
Getting a trade quote
We supply wholesale spirits, wine and beer to UK trade buyers and for export. Tell us your products, quantities and destination and we will quote accordingly.