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Alcoholic Liquor Duties Act 1979 (repealed)

Type Public General Act

Publication 1979-02-22

Last updated 2023-02-07

State In force

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Part I — Preliminary

The alcoholic liquors dutiable under this Act

1

(1) Subsections (2) to (8) below define for the purposes of this Act the alcoholic liquors which are subject to excise duty under this Act, that is to say—

(a) spirits,

(b) beer,

(d) made-wine, and

(e) cider;

and in this Act “dutiable alcoholic liquor” means any of those liquors and “duty” means excise duty.

(2) “Spirits” means, subject to subsections (7) to (9) below—

(a) spirits of any description which are of a strength exceeding 1.2 per cent

(b) any such mixture, compound or preparation made with spirits as is of a strength exceeding 1.2 per cent or

....

(3) “Beer” includes ale, porter, stout and any other description of beer, and any liquor which is made or sold as a description of beer or as a substitute for beer and which is of a strength exceeding 0.5 per cent....

(4) “Wine” means any liquor which is of a strength exceeding 1.2 per cent and which is obtained from the alcoholic fermentation of fresh grapes or of the must of fresh grapes, whether or not the liquor is fortified with spirits or flavoured with aromatic extracts.

(5) “Made-wine” means subject to subsection (10) and section 55B(1) below any liquor which is of a strength exceeding 1.2 per cent and which is obtained from the alcoholic fermentation of any substance or by mixing a liquor so obtained or derived from a liquor so obtained with any other liquor or substance but does not include wine, beer, ... spirits or cider.

(6) “Cider” means , subject to section 55B(1) below, cider (or perry)—

(a) which is of a strength exceeding 1.2 per cent but less than 8.5 per cent,

(b) which is obtained from the fermentation of apple or pear juice, without the addition at any time of—

(i) any alcoholic liquor, or

(ii) any liquor or substance which communicates colour or flavour,

other than such as the Commissioners may allow as appearing to them to be necessary to make cider (or perry),

(d) which satisfies the final product juice requirement.

For the purposes of this subsection—

(i) “the pre-fermentation mixture” for cider (or perry) means the mixture of juice and other ingredients in which the fermentation from which the cider (or perry) is obtained takes place, as that mixture exists immediately before the fermentation process commences,

(ii) if the cider (or perry) consists of a blend of two or more liquors constituting cider (or perry), references in this subsection to the pre-fermentation mixture are to the pre-fermentation mixtures for each of those liquors taken as a whole,

(iii) the pre-fermentation mixture for the cider (or perry) satisfies the pre-fermentation juice requirement if the volume of apple or pear juice of a gravity of at least 1033 degrees included in the mixture is a volume not less than 35 per cent of the volume of the pre-fermentation mixture,

(iv) the cider (or perry) satisfies the final product juice requirement if the aggregate of the volume of apple or pear juice of a gravity of at least 1033 degrees included in the pre-fermentation mixture and the volume of any such apple or pear juice added after fermentation commences is a volume not less than 35 per cent of the volume of the cider (or perry), and

(v) the volume of any juice, the pre-fermentation mixture and the cider (or perry) is to be computed as at 20°C.

(6A) The Treasury may by order made by statutory instrument amend subsection (6) above.

(6B) An order under subsection (6A) above may make—

(a) consequential amendments in this Act or any other enactment,

(b) other consequential provision, and

(6C) A statutory instrument containing an order under subsection (6A) above is to be laid before the House of Commons after being made; and, unless it is approved by that House before the end of the period of 28 days beginning with the date on which it is made, ceases to have effect at the end of that period (but without that affecting anything previously done under it or the making of a new order).

(6D) In reckoning that period no account is to be taken of any time—

(a) during which Parliament is dissolved or prorogued, or

(b) during which the House of Commons is adjourned for more than 4 days.

(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8) Methyl alcohol, notwithstanding that it is so purified or prepared as to be drinkable, shall not be deemed to be spirits nor shall naptha or any mixture or preparation containing naphtha or methyl alcohol and not containing spirits as defined in subsection (2) above.

(9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(10) The Treasury may by order made by statutory instrument provide that any beverage of an alcoholic strength exceeding 1.2 per cent. but not exceeding 5.5 per cent. which is made with beer or cider and is of a description specified in the order shall be deemed to be beer or, as the case may be, cider, and not to be made-wine.

Ascertainment of strength, weight and volume of spirits and other liquors

2

(1) Subject to subsections (5) and (6) below, this section applies to spirits, anything that would be spirits if it were of a strength exceeding 1.2 per cent., ... and any fermented liquor other than wash, and “liquor” shall be construed accordingly.

(2) For all purposes of this Act—

(a) except where some other measure of quantity is specified, any computation of the quantity of any liquor or of the alcohol contained in any liquor shall be made in terms of the volume of the liquor or alcohol, as the case may be;

(b) any computation of the volume of any liquor or of the alcohol contained in any liquor shall be made in litres as at 20_C; and

(c) the alcoholic strength of any liquor is the ratio of the volume of the alcohol contained in the liquor to the volume of the liquor (inclusive of the alcohol contained in it);

and in this Act, unless the context otherwise requires—

“alcohol” means ethyl alcohol; and

“strength” in relation to any liquor, means its alcoholic strength computed in accordance with this section, the ratio referred to in paragraph (c) above being expressed as a percentage.

(3) The Commissioners may make regulations prescribing the means to be used for ascertaining for any purpose the strength, weight or volume of any liquor, and any such regulations may provide that in computing for any purpose the strength of any liquor any substance contained therein which is not alcohol or distilled water may be treated as if it were.

(3A) Without prejudice to the generality of subsection (3) above, regulations under that subsection may provide that for the purpose of charging duty on any spirits, beer, cider, wine or made-wine contained in any bottle or other container, the strength, weight or volume of the liquor in that bottle or other container may be ascertained by reference to any information given on the bottle or other container by means of a label or otherwise or to any documents relating to the bottle or other container.

(4) Different regulations may be made under subsection (3) above for different purposes.

(5) Nothing in this section shall prevent the strength, weight or volume of beer, wine, made-wine or cider from being computed for the purpose of charging duty thereon by methods other than that provided in this section.

(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7) Except as provided in subsection (8) below, where the quantity of alcohol contained in any spirits ... falls to be computed in accordance with this section on or after 1st January 1980 and the quantity of those spirits ... was last computed in accordance with this section before that date the following conversion factor shall be applied in making the first-mentioned computation, that is to say, one gallon of spirits at proof shall be taken to be equivalent to 2·595 litres of alcohol.

(8) The Commissioners may, if they think fit in any particular case, require the quantity of alcohol contained in any spirits ... falling within subsection (7) above to be computed in accordance with this section without applying the conversion factor specified in that subsection.

Meaning of and method of ascertaining gravity of liquids

3

(1) For the purposes of the Customs and Excise Acts 1979—

(a) “gravity”, in relation to any liquid, means the ratio of the weight of a volume of the liquid to the weight of an equal volume of distilled water, the volume of each liquid being computed as at 20_C;

(b) where the gravity of any liquid is expressed as a number of degrees that number shall be the said ratio multiplied by 1,000; and

(c) “original gravity”, in relation to any liquid in which fermentation has taken place, means its gravity before fermentation.

(2) The gravity of any liquid at any time shall be ascertained by such means as the Commissioners may approve, and the gravity so ascertained shall be deemed to be the true gravity of the liquid.

(3) . . ., where for any purposes of the Customs and Excise Acts 1979 it is necessary to ascertain the original gravity of worts in which fermentation has commenced or of any liquid produced from such worts, that gravity shall be determined in such manner as the Commissioners may by regulations prescribe.

(4) Different regulations may be made under subsection (3) above in relation to different liquids.

(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Interpretation

4

(1) In this Act, unless the context otherwise requires,—

“alcohol” has the meaning given by section 2 above;

“authorised denaturer” means a person authorised under section 75(1) below to denature dutiable alcoholic liquor;

“beer” has the meaning given by section 1 above;

“British compounded spirits” means spirits which have, in the United Kingdom, had any flavour communicated thereto or ingredient or material mixed therewith, not being denatured alcohol;

“case”, in relation to dutiable alcoholic liquor, means 1 dozen units each consisting of a container holding not less than 65 nor more than 80 centilitres, or the equivalent of that number of such units made up wholly or partly of containers of a larger or smaller size;

“cider” has the meaning given by section 1 above;

“compounder” means a person holding a licence as a compounder under section 18 below;

“denatured alcohol” means denatured alcohol within the meaning of section 5 of the Finance Act 1995, and references to denaturing a liquor are references to subjecting it to any process by which it becomes denatured alcohol;

“distiller”, means a person holding a distiller’s licence under section 12 below;

“distiller’s licence” has the meaning given by section 12(1) below;

“distiller’s warehouse” means a place of security provided by a distiller and approved by the Commissioners under section 15(1) below;

“distillery” means premises where spirits are manufactured, whether by distillation of a fermented liquor or by any other process;

“dutiable alcoholic liquor” has the meaning given by section 1(1) above;

“duty” has the meaning given by section 1(1) above and “duty-paid”, “duty-free” and references to drawback shall be construed accordingly;

“general beer duty” has the meaning given by section 36(1ZAA);

“gravity” and “original gravity” have the meanings given by section 3 above;

“high strength beer duty” has the meaning given by section 37(3);

“justices’ licence” and “justices on-licence”—...in the application of this Act to Northern Ireland mean a licence corresponding to the relevant licence such as is mentioned in paragraph (a) of this definition;

“licensed”, in relation to a producer of wine or of made-wine, means a producer who holds a licence to produce wine or made-wine respectively under subsection (2) of section 54 or 55 below;

“licensed denaturer” means a person holding a licence under section 75(2) below;

. . .

“made-wine” has the meaning given by section 1 above;

“the Management Act” means the Customs and Excise Management Act 1979;

“package”, in relation to beer, means to put beer into tanks, casks, kegs, cans, bottles or any other receptacles of a kind in which beer is distributed to wholesalers or retailers;

“packager”, in relation to beer, means a person carrying on the business of packaging beer;

“the prescribed sum”, in relation to the penalty provided for an offence, means—if the offence was committed in England or Wales ... , the prescribed sum within the meaning of section 32 of the Magistrates’ Court Act 1980 (£1,000 or other sum substituted by order under section 143(1) of that Act);if the offence was committed in Scotland, the prescribed sum within the meaning of subsection (8) of section 225 of the Criminal Procedure (Scotland) Act 1995 (£5,000 or other sum substituted by order under subsection (4) of that section);if the offence was committed in Northern Ireland, the prescribed sum within the meaning of Article 4 of the Fines and Penalties (Northern Ireland) Order 1984 (£1,000 or other sum substituted by order under Article 17 of that Order);

“producer of made-wine” includes a person who renders made-wine sparkling and “produce”, in relation to made-wine, shall be construed accordingly;

“producer of wine” includes a person who renders wine sparkling, and “produce”, in relation to wine, shall be construed accordingly;

. . .

“rectifier” means a person holding a licence as a rectifier under section 18 below;

“registered brewer” has the meaning given by section 47(1) below;

“registered club” means a club ... ... which is for the time being a registered club within the meaning of the Registration of Clubs (Northern Ireland) Order 1996;

“retailer” means—in relation to dutiable alcoholic liquor, a person who sells such liquor by retail;. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

“Scottish licence” includes a licence of a type described in Schedule 1 to the Licensing (Scotland) Act 1976, (other than an off-sale licence), an occasional licence granted in terms of section 33 of the said Act, an occasional permission granted in terms of section 34 of the said Act, and a licence granted in terms of section 40 of the said Act;

“spirits” has the meaning given by section 1 above;

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

“spirits of wine” means plain spirits of a strength of not less than 80 per cent. manufactured in the United Kingdom;

“strength”, in relation to any liquor, has the meaning given by section 2 above;

“wholesale” (except in Part 6A), in relation to dealing in dutiable alcoholic liquor, means the sale at any one time to any one person of quantities not less than the following, namely—

(a) in the case of spirits, wine or made-wine, 9 litres or 1 case; or

(b) in the case of beer or cider, 20 litres or 2 cases;

“wholesaler” means a person who deals wholesale in dutiable alcoholic liquor;

“wine” has the meaning given by section 1 above.

(2) This Act and the other Acts included in the Customs and Excise Acts 1979 shall be construed as one Act but where a provision of this Act refers to this Act that reference is not to be construed as including a reference to any of the others.

(3) Any expression used in this Act or in any instrument made under this Act to which a meaning is given by any other Act included in the Customs and Excise Acts 1979 has, except where the context otherwise requires, the same meaning in this Act or in any such instrument as in that Act; and for ease of reference the Table below indicates the expressions used in this Act to which a meaning is given by any other such Act—

Management Act

“the Commissioners”

“container”

“the Customs and Excise Acts 1979”

“ excise duty point ”

“excise warehouse”

“goods”

“hovercraft”

“importer”

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

“night”

“occupier”

“officer” and “proper” in relation to an officer

“ship” and “British ship”

“shipped”

“shipment”

“stores”

“tons register”

“United Kingdom waters”

“warehouse”

“warehousing regulations”.

(4) For the purposes of this Act (except in Part 6A), selling by retail, in relation to dutiable alcoholic liquor, means the sale at any one time to any one person of quantities not exceeding the following, that is to say—

(a) in the case of spirits, wine or made-wine, 9 litres or 1 case;

(b) in the case of beer or cider, 21 litres or 2 cases.

Part II — Spirits

Charge of excise duty

Spirits: charge of excise duty

5

There shall be charged on spirits—

(a) imported into the United Kingdom; or

(b) distilled, or manufactured by any other process whatsoever, in the United Kingdom,

a duty of excise at the rate of £28.74 per litre of alcohol in the spirits

Reliefs from excise duty

Power to exempt angostura bitters from duty

6

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Exemption from duty of spirits in articles used for medical purposes

7

Duty shall not be payable on any spirits contained in an article imported or delivered from warehouse which is recognised by the Commissioners as being used for medical purposes.

Repayment of duty in respect of spirits used for medical or scientific purposes

8

(1) Where a person proposes to use spirits—

(a) in the manufacture or preparation of any article recognised by the Commissioners as being an article used for medical purposes; or

(b) for scientific purposes,

the Commissioners may, if they think fit and subject to such conditions as they see fit to impose, authorise that person to receive, and permit the delivery from warehouse to that person of, spirits for that use without payment of the duty chargeable thereon.

(2) If any person contravenes or fails to comply with any condition imposed under this section his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties).

(3) Subsection (4) below applies if—

(a) spirits are received and delivered in accordance with subsection (1) above,

(b) they are not used as proposed, and

(c) it is not shown to the satisfaction of the Commissioners that they can be accounted for by natural waste or other legitimate cause.

(4) In such a case the Commissioners—

(a) may assess as being excise duty due from the person concerned an amount equal to the duty that would have been chargeable on the spirits if, at the time of delivery from warehouse, they had been delivered for home use and otherwise than in accordance with subsection (1) above, and

(b) may notify him or his representative accordingly.

Remission of duty on spirits for methylation

9

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Remission of duty on spirits for use in art or manufacture

10

(1) Where, in the case of any art or manufacture carried on by any person in which the use of spirits is required, it is proved to the satisfaction of the Commissioners that the use of denatured alcohol is unsuitable or detrimental, the Commissioners may, if they think fit and subject to such conditions as they see fit to impose, authorise that person to receive, and permit the delivery from warehouse to that person of, spirits for use in that art or manufacture without payment of the duty chargeable thereon.

(2) If any person contravenes or fails to comply with any condition imposed under this section his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties).

(3) Subsection (4) below applies if—

(a) spirits are received and delivered in accordance with subsection (1) above,

(b) they are not used as proposed, and

(c) it is not shown to the satisfaction of the Commissioners that they can be accounted for by natural waste or other legitimate cause.

(4) In such a case the Commissioners—

(a) may assess as being excise duty due from the person concerned an amount equal to the duty that would have been chargeable on the spirits if, at the time of delivery from warehouse, they had been delivered for home use and otherwise than in accordance with subsection (1) above, and

(b) may notify him or his representative accordingly.

Relief from duty on imported goods not for human consumption containing spirits

11

(1) On the importation of goods not for human consumption containing spirits as a part or ingredient thereof, the Commissioners may, subject to such conditions as they may think fit to impose, direct the goods to be treated for the purposes of the charge of duty on spirits (and in particular the charge under section 126 of the Management Act) as not containing spirits.

(2) Subsection (3) below applies if—

(a) the Commissioners make a direction under subsection (1) above, but

(b) it turns out that the goods were for human consumption.

(3) In such a case the Commissioners—

(a) may assess as being excise duty due from the relevant person an amount equal to the duty that would have been chargeable on the goods if the direction had not been made, and

(b) may notify him or his representative accordingly.

(4) The reference in subsection (3) above to the relevant person is to the importer or (if different) the person who sought the direction.

Manufacture of spirits

Licence to manufacture spirits

12

(1) No person shall manufacture spirits, whether by distillation of a fermented liquor or by any other process, unless he holds an excise licence for that purpose under this section (referred to in this Act as a “distiller’s licence”).

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) Where the largest still to be used on any premises in respect of which a distiller’s licence is sought for the manufacture of spirits by distillation of a fermented liquor is of less than 18 hectolitres capacity, the Commissioners may refuse to grant the licence or may grant it only subject to such conditions as they see fit to impose and where the largest still so used on any premises in respect of which a licence is held is of less than that capacity, the Commissioners may revoke the licence or attach to it such conditions as they see fit to impose.

(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Power to make regulations relating to manufacture of spirits

13

(1) The Commissioners may, with a view to the protection of the revenue, make regulations—

(a) regulating the manufacture of spirits, whether by distillation of a fermented liquor or by any other process;

(b) for securing and collecting the duty on spirits manufactured in the United Kingdom; and

and different regulations may be made in respect of manufacture for different purposes or by different processes.

(1A) Without prejudice to the generality of subsection (1) above, regulations under that subsection may—

(a) provide for the imposition under the regulations of conditions and restrictions relating to the matters mentioned in that subsection; and

(b) impose or provide for the imposition of requirements on a manufacturer of spirits to keep and preserve records relating to his business as such a manufacturer and to produce them to an officer when required to do so for the purpose of allowing him to inspect them, to copy or take extracts from them or to remove them at a reasonable time and for a reasonable period.

(1B) Where any documents removed under the powers conferred by subsection (1A)(b above are lost or damaged the Commissioners shall be liable to compensate their owner for any expenses reasonably incurred by him in replacing or repairing the documents.

(2) Where—

(a) the Commissioners are satisfied that any process of manufacture carried on by any person involving the manufacture of spirits is primarily directed to the production of some article other than spirits; or

(b) the Commissioners see fit in the case of any person manufacturing spirits by any process other than distillation of a fermented liquor,

they may direct that, subject to compliance with such conditions as they think proper to impose, such of the provisions of this Act relating to the manufacture of, or manufacturers of, spirits or such of any regulations made under this section as may be specified in the direction shall not apply in the case of that person.

(2A) If the Commissioners so direct, spirits manufactured by a process to which a direction under subsection (2) above applies shall be treated as not being within the charge of duty on spirits under section 5 above.

(3) If, save as provided in subsection (2) above, any person contravenes or fails to comply with any regulation made under subsection (1) above or with any condition, restriction or requirement imposed under such a regulationhis contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties) and any spirits, and any vessels, utensils and materials used for distilling or otherwise manufacturing or for preparing spirits, in respect of which any person contravenes any such regulation, or fails to comply with any such regulation, condition, restriction or requirement, shall be liable to forfeiture.

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) If any person in whose case a direction is given by the Commissioners under subsection (2) above acts in contravention of or fails to comply with any condition imposed under that subsection which is applicable in his case, his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties), and any spirits in respect of which any person contravenes or fails to comply with any such condition shall be liable to forfeiture.

Duty on spirits-attenuation charge

14

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Distiller's warehouse

15

(1) A distiller may provide in association with his distillery a place of security for the deposit of spirits manufactured at that distillery and, if that place is approved by the Commissioners and entry is made thereof by the distiller, may deposit therein without payment of duty any spirits so manufactured.

(2) The Commissioners may approve such a place of security for such periods and subject to such conditions as they think fit.

(3) A place of security for the time being approved by the Commissioners under subsection (1) above is referred to in this Act as a “distiller’s warehouse”.

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) Where, after the approval of a distiller’s warehouse, the distiller by whom it is provided makes, without the previous consent of the Commissioners, an alteration in or addition to that warehouse, the making of the alteration or addition shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties).

(6) The Commissioners may make regulations—

(a) regulating the warehousing of spirits in a distiller’s warehouse;

(b) permitting, in so far as it appears to them necessary in order to meet the circumstances of any special case and subject to such conditions as they see fit to impose, the deposit by a distiller in his distiller’s warehouse without payment of duty of spirits other than spirits manufactured at the distillery associated with that warehouse;

and subject to any such regulations, the provisions of Parts VIII and X of the Management Act, except sections 92 and 96, shall apply in relation to a distiller’s warehouse and spirits warehoused therein as they apply in relation to an excise warehouse approved under subsection (1) of section 92 of that Act and goods warehoused therein.

(6A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7) If any person contravenes or fails to comply with any regulation made under subsection (6) above or with any condition . . . imposed under such a regulation his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties), and any spirits in respect of which any person contravenes any such regulation, or fails to comply with any such regulation or condition, shall be liable to forfeiture.

(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(9) The Commissioners may at any time for reasonable cause revoke or vary the terms of their approval of a distiller’s warehouse.

Racking of duty-paid spirits at distillery

16

(1) The Commissioners may, with a view to the protection of the revenue, make regulations regulating the racking at a distillery of duty-paid spirits.

(2) If any person contravenes or fails to comply with any regulation made under this section, his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties), and any spirits in respect of which any person contravenes or fails to comply with any such regulation shall be liable to forfeiture.

(3) If on an officer’s taking stock of duty-paid spirits racked at a distillery, a greater quantity of alcohol is found at the place of racking than ought to be there according to any accounts required by regulations made under this section to be kept thereof then—

(a) duty shall be charged on the excess; and

(b) if the excess amounts to more than 1 per cent. of the quantity of alcohol lawfully brought into the place of racking since stock was last taken, such a quantity of spirits as contains an amount of alcohol equal to that excess shall be liable to forfeiture, and there shall be deemed to have been conduct by the distiller attracting a penalty under section 9 of the Finance Act 1994 (civil penalties).

(4) Paragraph (b) of subsection (3) above shall not apply where the excess of alcohol is less than 3 litres.

Offences in connection with removal of spirits from distillery, etc.

17

(1) If any person—

(a) conceals in or without the consent of the proper officer removes from a distillery any wort, wash, low wines, feints or spirits; or

(b) knowingly buys or receives any wort, wash, low wines, feints or spirits so concealed or removed; or

(c) knowingly buys or receives or has in his possession any spirits which have been removed from the place where they ought to have been charged with duty before the duty payable thereon has been charged and either paid or secured, not being spirits which have been condemned or are deemed to have been condemned as forfeited,

he shall be guilty of an offence under this section and may be detained, and the goods shall be liable to forfeiture.

(2) A person guilty of an offence under this section shall be liable—

(a) on summary conviction, to a penalty of £20,000 or three times the value of the goods, whichever is the greater, or to imprisonment for a term not exceeding 6 months, or to both; or

(b) on conviction on indictment, to a penalty of any amount, or to imprisonment for a term not exceeding 2 years, or to both.

Rectifying and compounding of spirits

Rectifier's and compounder's licences

18

(1) No person shall rectify or compound spirits and keep a still for that purpose unless he holds an excise licence under this section as a rectifier.

(2) Except as permitted by the Commissioners and subject to such conditions as they see fit to impose, no other person shall compound spirits unless he holds an excise licence under this section as a compounder.

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) Without prejudice to section 25 below and except as provided by this section, if any person rectifies or compounds spirits otherwise than under and in accordance with an excise licence under this Act so authorising him, his doing so shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties).

Regulation of rectifying and compounding

19

(1) The Commissioners may, with a view to the protection of the revenue, make regulations—

(a) regulating the rectifying and compounding of spirits;

(b) regulating the receipt, storage, removal and delivery of spirits by rectifiers and compounders;

and different regulations may be made under this section for rectifiers and compounders.

(1A) Without prejudice to the generality of subsection (1) above, regulations under that subsection may—

(a) provide for the imposition under the regulations of conditions and restrictions relating to the matters mentioned in that subsection; and

(b) impose or provide for the imposition under the regulations of requirements on rectifiers and compounders of spirits to keep and preserve records relating to their business as such and to produce them to an officer when required to do so for the purpose of allowing him to inspect them, to copy or take extracts from them or to remove them at a reasonable time and for a reasonable period.

(1B) Where any documents removed under the powers conferred by subsection (1A)(b) above are lost or damaged the Commissioners shall be liable to compensate their owner for any expenses reasonably incurred by him in replacing or repairing the documents.

(2) If any person contravenes or fails to comply with any regulation made under this section or with any condition, restriction or requirement imposed under any such regulation, his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties), and any spirits and any other article in respect of which any person contravenes any such regulation, or fails to comply with any such regulation, condition, requirement or restriction, shall be liable to forfeiture.

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Penalty for excess or deficiency in rectifier's stock

20

(1) If at any time when an account is taken by an officer and a balance struck of the spirits in the stock of a rectifier any excess of alcohol is found, such a quantity of spirits as contains an amount of alcohol equal to the excess shall be liable to forfeiture and there shall be deemed to have been conduct by the rectifier attracting a penalty under section 9 of the Finance Act 1994 (civil penalties).

(2) If at any time when an account is taken and a balance struck as aforesaid any deficiency of alcohol is found which cannot be accounted for to the satisfaction of the Commissioners and which exceeds 5 per cent. of the aggregate of—

(a) the quantity of alcohol in the balance of spirits struck when an account was last taken; and

(b) the quantity of alcohol contained in any spirits since lawfully received by the rectifier,

there shall be deemed to have been conduct by the rectifier attracting a penalty under section 9 of the Finance Act 1994 (civil penalties).

(3) For the purposes of any such account and of this section—

(a) spirits used by a rectifier in warehouse in pursuance of warehousing regulations shall be deemed not to be spirits in his stock as a rectifier; and

(b) where a rectifier also carries on the trade of a wholesaler of spirits on the same premises, all spirits in his possession (other than spirits so used) shall be deemed to be spirits in his stock as a rectifier.

Restrictions relating to rectifiers

21

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Drawback on British compounds and spirits of wine

22

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Allowance on British compounds

23

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

General provisions relating to manufacture of spirits and British compounds

Restriction on carrying on of other trades by distiller or rectifier

24

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Penalty for unlawful manufacture of spirits, etc.

25

(1) Save as provided by or under this Act, any person who, otherwise than under and in accordance with an excise licence under this Act so authorising him—

(a) manufactures spirits, whether by distillation of a fermented liquor or by any other process; or

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . uses a still for distilling, rectifying or compounding spirits; or

(d) not being a vinegar-maker, produces or makes or has in his possession any wort or wash fit for distillation,

shall be liable on summary conviction to a penalty of £20,000.

(2) Where there is insufficient evidence to convict a person of an offence under subsection (1) above, but it is proved that such an offence has been committed on some part of premises belonging to or occupied by that person in such circumstances that it could not have been committed without his knowledge, that person shall be liable on summary conviction to a penalty of level 3 on the standard scale.

(3) Any person found on premises on which spirits are being unlawfully manufactured or on which a still is being unlawfully used for rectifying or compounding spirits may be detained.

(4) All spirits and stills, vessels, utensils, wort, wash and other materials for manufacturing, distilling or preparing spirits—

(a) found in the possession of any person who commits an offence under subsection (1) above; or

(b) found on any premises on which such an offence has been committed,

shall be liable to forfeiture.

(5) Notwithstanding any other provision of the Customs and Excise Acts 1979 relating to goods seized as liable to forfeiture, any officer by whom any thing is seized as liable to forfeiture under subsection (4) above may at his discretion forthwith spill, break up or destroy that thing.

(6) Without prejudice to any other power conferred by the Customs and Excise Acts 1979, if any officer has reasonable grounds for suspecting that any thing liable to forfeiture under this section is in or upon any land or other premises in Northern Ireland, he may enter upon those premises, if need be by force, and search them and seize and remove any thing which he has reasonable grounds to believe to be so liable.

General provisions relating to spirits

Importation and exportation of spirits

26

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Spirits consignment and spirits advice notes

27

Regulations about the keeping and production of spirits advice and spirits consignment notes, etc.

28

(1) As respects spirits in the case of which a requirement is imposed by this Act that a spirits advice note or a spirits consignment note shall be sent in connection with their removal, the Commissioners may make regulations requiring the keeping and production of such notes and copies thereof, and of stock books.

(2) If any person contravenes or fails to comply with any regulation made under this section he shall, except in the circumstances specified in subsection (3) below, be liable on summary conviction to a penalty of £200.

(3) No liability shall be incurred under subsection (2) above for failure to keep or produce a spirits advice note, spirits consignment note or copy of such a note in accordance with any such regulation if it is proved that the note or, as the case may be, the note and any copy thereof was or were lost or destroyed by accident.

Offences in connection with spirits advice and spirits consignment notes

29

(1) Where a spirits advice note or a spirits consignment note is required by this Act in connection with the removal of any spirits, then if any person—

(a) sends out or causes to be sent out, any spirits without the proper spirits advice note or spirits consignment note being duly sent; or

(b) requests, obtains or uses, or causes or permits to be requested, obtained or used, a spirits advice note or a spirits consignment note for any purpose otherwise than in accordance with the terms thereof; or

(c) in any manner uses or causes or permits the use of any spirits advice note or spirits consignment note so that the taking or checking of any account or the making of any examination by an officer is or may be frustrated or evaded; or

(d) produces or causes or permits the production of any spirits advice note or spirits consignment note to an officer as having been received with or in connection with any spirits other than those to which it relates,

he shall, in addition to any other punishment to which he may have become liable, be liable on summary conviction to a penalty of three times the value of any spirits in respect of which the offence was committed or £100, whichever is the greater.

(2) Any spirits—

(a) in connection with the removal of which a spirits advice note is required by this Act which are found in the course of being, or to have been, sent out, removed or received—

(i) without a proper spirits advice note having been duly sent, or

(ii) in contravention of section 27(4) above ; or

(b) in the case of which an altered or untrue spirits advice note has been sent,

shall be liable to forfeiture, and any person in whose possession any such spirits are found shall be liable on summary conviction to a penalty of three times the value of the goods or £100, whichever is the greater.

Special provisions as to spirits advice and spirits consignment notes

30

(1) If in any proceedings under section 29 above, any question arises as to the accuracy of the description of any spirits in a spirits advice note or spirits consignment note—

(a) the burden of proof that the spirits correspond with the description shall lie on the person claiming that the spirits so correspond, who shall furnish that proof by the evidence of two persons competent to decide by examination of the spirits ;

(b) the description of spirits shall not be deemed to be inaccurate by reason only of the fact that they are of a strength differing from that specified in the spirits advice note or spirits consignment note where the actual strength is not more than 1° of proof above or 2° of proof below that so specified.

(2) If a distiller, rectifier or compounder or a wholesaler or retailer of spirits is convicted of an offence in relation to spirits under section 29 above, the Commissioners may revoke his licence and refuse to re-grant him a licence during the remainder of the period for which the revoked licence would have been in force.

Restriction on delivery of immature spirits for home use

31

Restriction on transfer of British spirits in warehouse

32

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Restrictions on use of certain goods relieved from spirits duty

33

(1) If any person uses otherwise than for a medical or scientific purpose—

(a) any mixture which has on importation been relieved to any extent of the duty chargeable in respect of the spirits contained in it or used in its preparation or manufacture by reason of being a mixture which is recognised by the Commissioners as being used for medical purposes; or

(b) any article containing spirits which were exempted from duty under section 7 above; or

(c) any article manufactured or prepared from spirits in respect of which remission of duty has been obtained under section 8 above; . . .

(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

his doing so shall, unless he has complied with the requirements specified in subsection (2) below, attract a penalty under section 9 of the Finance Act 1994 (civil penalties), and any article in his possession in the preparation or manufacture of which the mixture or article has been used shall be liable to forfeiture.

(2) The requirements with which a person must comply to avoid incurring liability under subsection (1) above are that—

(a) he must obtain the consent of the Commissioners in writing to the use of the mixture or article otherwise than for a medical or scientific purpose; and

(b) he must pay to the Commissioners an amount equal to the difference between the duty charged on the mixture and the duty which would have been chargeable if it had not been a mixture recognised as mentioned in subsection (1)(a) above, or to the amount of the duty remitted, as the case may be.

(3) The Commissioners may make regulations for the purpose of enforcing the provisions of this section.

(4) Regulations under subsection (3) above may in particular require any person carrying on any trade in which spirits, or mixtures or articles containing or prepared or manufactured with spirits, are in the opinion of the Commissioners likely to be or to have been used—

(a) to give and verify particulars of the materials which he is using or has used and of any such mixtures or articles which he has sold; and

(b) to produce any books of account or other documents of whatever nature relating to any such materials, mixtures or articles.

(5) If any person contravenes or fails to comply with any regulation made under subsection (3) above his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties).

(6) In this section “mixture” includes a preparation and a compound, and any reference to a mixture or article includes a reference to any part thereof.

Prohibition of grogging

34

(1) No person shall—

(a) subject any cask to any process for the purpose of extracting any spirits absorbed in the wood thereof; or

(b) have on his premises any cask which is being subjected to any such process or any spirits extracted from the wood of any cask.

(2) A contravention of this section shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties).

(3) All spirits extracted contrary to this section and every cask which is being subjected to any such process or which, being upon premises upon which spirits so extracted are found, has been subjected to any such process shall be liable to forfeiture.

Returns as to importation, manufacture, sale or use of alcohols

35

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part III — Beer

Charge of excise duty

Beer: charge of excise duty

36

(1) There shall be charged on beer—

(a) imported into the United Kingdom, or

(b) produced in the United Kingdom,

a duty of excise at the rates specified in subsection (1AA) below.

(1ZAA) The duty charged by subsection (1) is referred to in this Act as “general beer duty”.

(1AA) The rates at which general beer duty shall be charged are—

(za) in the case of beer that is of a strength which exceeds 1.2 per cent but does not exceed 2.8 per cent, £8.42 per hectolitre per cent of alcohol in the beer;

(a) in the case of beer that is of a strength which exceeds 2.8 per cent and is not small brewery beer, £19.08 per hectolitre per cent of alcohol in the beer;

(b) in the case of small brewery beer that is of a strength which exceeds 2.8 per cent and is produced in a singleton brewery, the rate per hectolitre per cent of alcohol in the beer that is given by section 36D below;

(c) in the case of small brewery beer that is of a strength which exceeds 2.8 per cent and is produced in a co-operated brewery, the rate per hectolitre per cent of alcohol in the beer that is given by section 36F below.

(1A) No general beer duty shall be chargeable under subsection (1) above on beer which is of a strength of 1.2 per cent. or less; but any such beer shall in all other respects be treated as if it were chargeable with a duty of excise.

(2) Subject to the provisions of this Act—

(a) general beer duty on beer produced in, or imported into, the United Kingdom shall be charged and paid, and

(b) the amount chargeable in respect of any such duty shall be determined and become due,

in accordance with regulations under section 49 below and with any regulations under section 1 of the Finance (No. 2) Act 1992.

Charge of excise duty: high strength beer

Charge of duty on beer brewed in the United Kingdom: general

37

(1) A duty of excise is charged on high strength beer—

(a) imported into the United Kingdom, or

(b) produced in the United Kingdom,

on or after 1 October 2011.

(2) “High strength beer” means beer which is of a strength exceeding 7.5 per cent.

(3) The duty charged by subsection (1) is referred to in this Act as “high strength beer duty”.

(4) High strength beer duty is charged at £5.69 per hectolitre per cent of alcohol in the beer.

(5) Subject to the provisions of this Act—

(a) the high strength beer duty on beer produced in, or imported into, the United Kingdom is to be charged and paid, and

(b) the amount chargeable in respect of any such duty is to be determined and becomes due,

in accordance with regulations under section 49 and with any regulations under section 1 of the Finance (No. 2) Act 1992.

Charge of duty on beer brewed in the United Kingdom: brewer for sale

38

Charge of duty on beer brewed in the United Kingdom: private brewer,

39

Charge of duty on imported beer

40

Reliefs from excise duty

Exemption from duty of beer brewed for private consumption

41

Neither general beer duty on beer produced in the United Kingdom, nor high strength beer duty on beer so produced, is chargeable on beer produced by a person who produces beer only for his own domestic use.

Drawback on exportation, removal to warehouse, shipment as stores, etc.

42

(1) This section applies to—

(a) beer which has been produced by a registered brewer; and

(b) beer which has been imported, or which has been removed into the United Kingdom from the Isle of Man.

(2) Subject to the provisions of this section and to such conditions as the Commissioners see fit to impose, drawback shall be allowable—

(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) on the exportation . . . by any person of any beer to which this section applies; or

and shall also be allowable, subject as aforesaid, in the case of any beer to which this section applies which it is shown to the satisfaction of the Commissioners is being exported or shipped as mentioned in paragraph (b) or (c) above as an ingredient of other goods.

(3) In the case of beer produced in the United Kingdom, the person intending to . . . export or ship the beer shall produce to the proper officer a declaration made by the person who paid the duty on the beer, in such form and manner as the Commissioners may direct, stating the strength of the beer and the date on which the duty became payable.

(4) In the case of beer produced outside the United Kingdom, the person intending to . . . export or ship the beer shall produce to the proper officer in such form and manner as the Commissioners may direct a declaration that the proper duty has been charged and paid thereon.

(5) The amount of the drawback payable under this section in respect of any duty paid shall be calculated according to the rate of drawback applicable during the period of currency of the rate at which the duty was paid to like beer charged with that rate of duty during that period.

(6) Drawback under this section shall, where it is shown to the satisfaction of the Commissioners that duty has been paid, be allowed at the same rate as the rate at which the duty is charged; . . .

Warehousing of beer for exportation, etc.

43

Remission or repayment of duty on beer used for purposes of research or experiment

44

(1) Where it is proved to the satisfaction of the Commissioners that any beer produced in the United Kingdom which is chargeable with duty is to be used only for the purposes of research or of experiments in the production of beer, the Commissioners may, if they think fit and subject to such conditions as they see fit to impose, remit or repay the duty chargeable on that beer.

(2) If any person contravenes or fails to comply with any condition imposed under subsection (1) above, his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties).

Repayment of duty on beer used in the production or manufacture of other beverages, etc.

45

Remission or repayment of duty on spoilt beer

46

(1) Where it is shown to the satisfaction of the Commissioners that any beer which has been removed from any premises of a registered brewer in respect of which he is registered under section 47 below has become spoilt or otherwise unfit for use and, in the case of beer delivered to another person, has been returned to the registered brewer as so spoilt or unfit, the Commissioners shall, subject to compliance with such conditions as they may by regulations impose, remit or repay any duty charged or paid in respect of the beer.

(2) If any person contravenes or fails to comply with any regulation made under subsection (1) above, his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties).

Producing of beer

Licences to brew beer

47

(1) A person who produces beer on any premises in the United Kingdom must be registered with the Commissioners under this section in respect of those premises; and in this Act “registered brewer” means a person registered under this section in respect of any premises.

(2) A person who produces beer on any premises shall not be required to be registered under this section in respect of those premises if the beer is produced solely for his own domestic use or solely for the purposes of research or experiments in the production of beer.

(3) An application for the registration under this section of any person required to be so registered in respect of any premises—

(a) shall be made at least fourteen days before the day on which he begins production of beer on those premises; and

(b) shall be in such form and manner as the Commissioners may by or under regulations prescribe.

(4) If any person fails to apply for registration under this section in circumstances where he is required by subsection (3)(a) above to do so, his failure shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties); and any beer or worts produced in contravention of that provision shall be liable to forfeiture.

(5) If any person produces beer on any premises in circumstances in which he is required to be, but is not, registered under this section in respect of those premises, his doing so shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties) ..., and the beer produced and any worts found on those premises shall be liable to forfeiture.

Licence to use premises for adding solutions to beer

48

(1) A brewer for sale shall not use for the purpose of adding priming or colouring solutions to beer any premises other than premises entered by him for the brewing of beer or an excise warehouse unless he holds an excise licence for that purpose under this section.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) If any brewer for sale uses any premises for the purpose mentioned in subsection (1) above contrary to this section or otherwise than in accordance with any licence granted to him in respect thereof under this section, he shall be liable on summary conviction to a penalty of level 3 on the standard scale .

Power to regulate manufacture of beer by brewers for sale

49

(1) The Commissioners may, with a view to managing, securing and collecting general beer duty or high strength beer duty on beer produced in, or imported into, the United Kingdom or to the protection of the revenues derived from any duty of excise on beer, make regulations—

(a) regulating the production, packaging, keeping and storage of beer produced in the United Kingdom and the packaging, keeping and storage of beer imported into the United Kingdom;

(b) regulating the registration of persons and premises under section 41A or 47 above and the revocation or variation of any such registrations;

(c) for determining under or in accordance with the regulations when the production of beer begins and when it is completed;

(d) for securing and collecting the duty;

(e) for determining the duty and the rate thereof and, in that connection, prescribing the method of charging the duty;

(f) for charging the duty, in such circumstances as may be prescribed in the regulations, by reference to a strength which the beer might reasonably be expected to have, or the rate of duty in force, at a time other than that at which the beer becomes chargeable;

(g) for relieving beer from the duty in such circumstances and to such extent as may be prescribed in the regulations;

(h) regulating and, in such circumstances as may be prescribed in the regulations, prohibiting the addition of substances to, the mixing of, or the carrying out of other operations on or in relation to, beer;

(j) regulating the transportation of beer in such circumstances as may be prescribed in the regulations.

(k) requiring the production of certificates as to matters relating to beer imported into the United Kingdom and the beer’s production and producer, whether as alternative conditions for charging the duty on the beer at a rate lower than that specified by section 36(1AA)(a) above or as evidence that conditions for charging the duty at such a rate are satisfied.

(2) Regulations under this section may make different provision for persons, premises or beer of different classes or descriptions, for different circumstances and for different cases.

(3) Where any person contravenes or fails to comply with any regulation made under this section, his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties), and any article or substance in respect of which any person contravenes or fails to comply with any such regulation shall be liable to forfeiture.

Regulations as respects sugar kept by brewers for sale

50

Power to require production of books by brewers for sale

51

Offences by brewers for sale

52

If any person is knowingly concerned in the taking of any steps with a view to the fraudulent evasion, whether by himself or another, of the duty on any beer, he shall be liable—

(a) on summary conviction, to a penalty of the statutory maximum or of three times the amount of the duty, whichever is the greater, or to imprisonment for a term not exceeding six months or to both, or

(b) on conviction on indictment, to a penalty of any amount or to imprisonment for a term not exceeding 7 years, or to both,

and, in either case, any beer in respect of which the offence was committed shall be liable to forfeiture.

Special provisions as to holders of limited licences to brew beer

53

Part IV — Wine and Made-Wine

Wine: charge of excise duty

54

(1) There shall be charged on wine—

(a) imported into the United Kingdom; or

(b) produced in the United Kingdom by a person who is required by subsection (2) below to be licensed to produce wine for sale,

a duty of excise at the rates shown in Schedule 1 to this Act and the duty shall, in so far as it is chargeable on wine produced in the United Kingdom, be charged and paid in accordance with regulations under section 56 below and with any regulations under section 1 of the Finance (No. 2) Act 1992.

(2) Subject to subsection (4) below, a person who, on any premises in the United Kingdom, produces wine for sale must hold an excise licence under this subsection in respect of those premises for that purpose.

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3A) For the purposes of this Act, the process of blending or otherwise mixing two or more wines (in this subsection referred to as “the constituent wines”) constitutes the production of wine if—

(a) the rate of duty applicable to one of the constituent wines is different from that applicable to the other or, as the case may be, at least one of the others; and

(b) the rate of duty applicable to the wine which is the product of the blending or other mixing is higher than that which is applicable to at least one of the constituent wines; and

and for the purposes of this subsection the rate of duty applicable to any wine is that which is or would be chargeable under subsection (1) above on its importation into the United Kingdom or, as the case may be, on its production as mentioned in paragraph (b) of that subsection.

(3B) Where, by virtue of subsection (3A) above, wine is produced in the United Kingdom, duty shall be chargeable on that wine by virtue of paragraph (b) of subsection (1) above whether or not duty was previously charged on all or any of the constituent wines by virtue of paragraph (a) or paragraph (b) of that subsection; but nothing in this subsection shall affect the operation of any regulations under section 56 below giving relief from duty on wine so produced by reference to duty charged on all or any of the constituent wines.

(4) A person who, in warehouse, produces wine for sale by rendering it sparkling in accordance with warehousing regulations need not hold an excise licence under subsection (2) above in respect of those premises.

(4A) A person who, on any premises, produces wine of a strength not exceeding 5.5 per cent by rendering it sparkling, need not on that account hold an excise licence under subsection (2) above in respect of those premises.

(5) If any person who is required by subsection (2) above to hold a licence under that subsection in respect of any premises produces wine on those premises without being the holder of a licence under that subsection in respect of those premises his doing so shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties) ..., and the wine and all vessels, utensils and materials for producing wine found in his possession shall be liable to forfeiture.

Made-wine: charge of excise duty

55

(1) There shall be charged on made-wine—

(a) imported into the United Kingdom; or

(b) produced in the United Kingdom by a person who is required by subsection (2) below to be licensed to produce made-wine for sale,

a duty of excise at the rates shown in Schedule 1 to this Act and the duty shall, in so far as it is chargeable on made-wine produced in the United Kingdom, be charged and paid in accordance with regulations under section 56 below and with any regulations under section 1 of the Finance (No. 2) Act 1992.

(2) Subject to subsections (4) and (5) below, a person who, on any premises in the United Kingdom, produces made-wine for sale must hold an excise licence under this subsection in respect of those premises for that purpose.

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) A person who, in warehouse, produces made-wine for sale be rendering it sparkling in accordance with warehousing regulations need not hold an excise licence under subsection (2) above in respect of those premises.

(4A) A person who, on any premises, produces made-wine of a strength not exceeding 5.5 per cent by rendering it sparkling, need not on that account hold an excise licence under subsection (2) above in respect of those premises.

(5) A person need not hold an excise licence under subsection (2) above in respect of premises on which he produces made-wine for sale so long as all the following conditions are satisfied in relation to the production of made-wine by him on those premises, that is to say—

(aa) he does not blend or otherwise mix two or more alcoholic liquors to which paragraphs (a) and (b) of section 66A(1) below or paragraphs (a) and (b) of section 66A(2) below apply;

(a) the duty chargeable on each alcoholic ingredient used by him has become payable before he uses it;

(b) the ingredients he uses do not include cider ...;

(d) he does not render sparkling any made-wine other than made-wine of a strength not exceeding 5.5 per cent ...

(e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) If any person who is required by subsection (2) above to hold a licence under that subsection in respect of any premises produces made-wine on those premises without being the holder of a licence under that subsection in respect of those premises his doing so shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties) ..., and the made-wine and all vessels, utensils and materials for producing made-wine found in his possession shall be liable to forfeiture.

Power to regulate making of wine and made-wine and provide for charging duty thereon

56

(1) The Commissioners may with a view to managing the duties on wine and made-wine produced in the United Kingdom for sale make regulations—

(a) regulating the production of wine and made-wine for sale, and the issue, . . . and cancellation of excise licences therefor;

(b) for determining the duty and the rates thereof and in that connection prescribing the method of charging the duty;

(d) for securing and collecting the duty;

(e) for relieving wine or made-wine from the duty in such circumstances and to such extent as may be prescribed in the regulations.

(2) If any person contravenes or fails to comply with any regulation made under this section, his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties), and any article in respect of which any person contravenes or fails to comply with any such regulation shall be liable to forfeiture.

Mixing of made-wine and spirits in warehouse

57

The Commissioners may, subject to such conditions as they see fit to impose, permit the mixing in an excise warehouse with made-wine (whether imported into or produced in the United Kingdom or removed to the United Kingdom from the Isle of Man) of duty-free spirits in a proportion not exceeding 12 litres of alchohol to 1 hectolitre of made-wine, so, however, that the mixture shall not by virtue of this section be raised to a greater strength than 18·3 per cent.

Mixing of wine and spirits in warehouse

58

(1) The Commissioners may, subject to such conditions as they see fit to impose, permit the mixing in an excise warehouse with wine (whether imported into or produced in the United Kingdom or removed to the United Kingdom from the Isle of Man) of duty-free spirits in a proportion not exceeding 12 litres of alcohol to 1 hectolitre of wine, so, however, that the mixture shall not, by virtue of this section, be raised to a greater strength than 22 per cent.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Rendering imported wine or made-wine sparkling in warehouse

59

(1) Wine or made-wine which—

(a) is imported or is removed to the United Kingdom from the Isle of Man; and

(b) is wine or made-wine of a strength exceeding 5.5 per cent.

shall not be rendered sparkling, whether by aeration, fermentation or any other process, except in warehouse in accordance with warehousing regulations.

(2) Where any person contravenes subsection (1) above or is concerned in such a contravention, his contravention or, as the case may be, his being so concerned shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties).

(3) All imported wine and imported made-wine rendered or being rendered sparkling in contravention of subsection (1) above, and all machinery, utensils, bottles and materials (including wine or made-wine) used or intended to be used in any process for rendering any wine or made-wine sparkling in contravention of that subsection shall be liable to forfeiture.

Repayment of duty on imported wine or made-wine used in the production or manufacture of other beverages, etc.

60

(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(1A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Remission or repayment of duty on spoilt wine or made-wine

61

(1) Where it is shown to the satisfaction of the Commissioners that any wine or made-wine which has been removed from the entered premises of a licensed producer of wine or of made-wine has accidentally become spoilt or otherwise unfit for use and, in the case of wine or made-wine delivered to another person, has been returned to the producer as so spoilt or unfit, the Commissioners shall, subject to compliance with such conditions as they may by regulations impose, remit or repay any duty charged or paid in respect of the wine or made-wine.

(2) If any person contravenes or fails to comply with any regulation made under subsection (1) above, his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties).

Part V — Cider

Excise duty on cider

62

(1) There shall be charged on cider—

(a) imported into the United Kingdom; or

(b) made in the United Kingdom by a person who is required by subsection (2) below to be registered as a maker of cider,

a duty of excise at the rates shown in subsection (1A) below.

(1A) The rates at which the duty shall be charged are—

(a) £288.10 per hectolitre in the case of sparkling cider of a strength exceeding 5.5 per cent.;

(b) £61.04 per hectolitre in the case of cider of a strength exceeding 7.5 per cent. which is not sparkling cider; ...

(ba) £50.71 per hectolitre in the case of cider of a strength of not less than 6.9 per cent but not exceeding 7.5 per cent which is not sparkling cider; and

(2) Subject to subsection (3) below, a person who, on any premises in the United Kingdom, makes cider for sale must be registered with the Commissioners in respect of those premises.

(3) The Treasury may by order made by statutory instrument provide for exempting from subsection (2) above makers of cider whose production does not exceed such limit as is specified in the order and who comply with such other conditions as may be so specified.

(4) If any person who is required by subsection (2) above to be registered in respect of any premises makes cider on those premises without being registered in respect of them, his doing so shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties) ..., and the cider and all vessels, utensils and materials for making cider found in his possession shall be liable to forfeiture.

(5) The Commissioners may with a view to managing the duty on cider made in the United Kingdom make regulations—

(a) regulating the making of cider for sale and the registration and cancellation of registration of makers of cider;

(b) for determining the duty and the rate thereof and in that connection prescribing the method of charging the duty;

(d) for relieving cider from the duty in such circumstances and to such extent as may be prescribed in the regulations.

(e) regulating and, in such circumstances as may be prescribed in the regulations, prohibiting the addition of substances to, the mixing of, or the carrying out of other operations on or in relation to, cider.

(6) If any person contravenes or fails to comply with any regulation made under subsection (5) above, his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties), and any article in respect of which any person contravenes or fails to comply with any such regulation shall be liable to forfeiture.

(7) References in this section to making cider shall be construed as including references to producing sparkling cider by rendering cider sparkling; and references in this section to cider made in the United Kingdom, to makers of cider and to making cider for sale shall be construed accordingly.

Repayment of duty on imported cider used in the production or manufacture of other beverages, etc.

63

(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Remission or repayment of duty on spoilt cider

64

(1) Where it is shown to the satisfaction of the Commissioners that any cider which has been removed from the entered premises of a registered maker of cider has accidentally become spoilt or otherwise unfit for use and, in the case of cider delivered to another person, has been returned to the maker as so spoilt or unfit, the Commissioners shall, subject to compliance with such conditions as they may by regulations impose, remit or repay any duty charged or paid in respect of the cider.

(1A) In subsection (1) above the references to a maker of cider include references to any person who is taken for the purposes of section 62 above to be a maker of cider.

(2) If any person contravenes or fails to comply with any regulation made under subsection (1) above, his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties).

Part VI — General Control Provisions

Sale of dutiable alcoholic liquors

Excise licence for dealing wholesale in certain alcoholic liquors

65

(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Excise licence not required for sale of certain alcoholic liquors

66

Power to regulate keeping of dutiable alcoholic liquors by wholesalers and retailers

67

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Penalty for excess in stock of wholesaler or retailer of spirits

68

Miscellaneous provisions as to wholesalers and retailers of spirits

69

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

General offences in connection with sale of spirits

70

Penalty for mis-describing liquor as spirits

71

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Offences by wholesaler or retailer of beer

72

Penalty for mis-describing substances as beer

73

Liquor to be deemed wine or spirits

74

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Denatured alcohol

Licence or authority to manufacture and deal wholesale in methylated spirits

75

(1) The Commissioners may authorise any distiller, rectifier or compounder to denatured alcohol, and any person so authorised is referred to in this Act as an “authorised denaturer”.

(2) No person other than an authorised denaturer shall denature dutiable alcoholic liquor or deal wholesale in denatured alcohol unless he holds an excise licence as a denaturer under this section.

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) Where any person, not being an authorised denaturer, denatures dutiable alcoholic liquor otherwise than under and in accordance with a licence under this section his doing so shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties).

(6) The Commissioners may at any time revoke or suspend any authorisation or licence granted under this section.

(7) For the purposes of this section, dealing wholesale means the sale at any one time to any one person of a quantity of denatured alcohol of not less than 20 litres or such smaller quantity as the Commissioners may by regulations specify.

Licence to retail methylated spirits

76

Power to make regulations relating to methylated spirits

77

(1) The Commissioners may with a view to the protection of the revenue make regulations—

(a) regulating the denaturing of dutiable alcoholic liquor and the supply, storage, removal, sale, delivery, receipt, use and exportation or shipment as stores of denatured alcohol;

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(d) permitting dealing wholesale (within the meaning of section 75 above) without a licence in such denatured alcohol as may be specified in the regulations;

(e) regulating the importation, receipt, removal, storage and use of dutiable alcoholic liquor for denaturing;

(f) regulating the storage and removal of substances to be used in denaturing dutiable alcoholic liquor;

(g) prescribing the manner in which account is to be kept of stocks of denatured alcohol in the possession of authorised or licensed denaturers and of retailers of denatured alcohol;

(h) for securing any duty chargeable in respect of denatured alcohol of any class.

(2) Different regulations may be made under this section with respect to different classes of denatured alcohol or different kinds of denatured alcohol of any class and, without prejudice to the generality of subsection (1) above, regulations under this section may—

(a) provide for the imposition under the regulations of conditions and restrictions relating to the matters mentioned in that subsection, and

(aa) frame any provision of the regulations with respect to the supply, receipt or use of denatured alcohol by reference to matters to be contained from time to time in a notice published in accordance with the regulations by the Commissioners and having effect until withdrawn in accordance with the regulations; and

(b) impose or provide for the imposition by regulations of requirements on authorised or licensed denaturers and on retailers of denatured alcohol to keep and preserve records relating to their businesses as such and to produce them to an officer when required to do so for the purpose of allowing him to inspect them, to copy or take extracts from them or to remove them at a reasonable time and for a reasonable period.

(2A) Where any documents removed under the powers conferred by subsection (2)(b) above are lost or damaged the Commissioners shall be liable to compensate their owner for any expenses reasonably incurred by him in replacing or repairing the documents.

(3) If any person contravenes or fails to comply with any regulation under this section, or with any condition, restriction or requirement imposed under such a regulation, his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties).

(4) If, save as permitted by any regulation under this section, any person deals wholesale (within the meaning of section 75 above) in denatured alcohol otherwise than under and in accordance with a licence under section 75 ... above, his doing so shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties).

(5) Any dutiable alcoholic liquor or denatured alcohol in respect of which there is such a contravention or failure to comply as is mentioned in subsection (3) above or any such dealing as is mentioned in subsection (4) above shall be liable to forfeiture.

(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Additional provisions relating to methylated spirits

78

(1) This subsection applies if, at any time when an account is taken and a balance struck of the quantity of any kind of denatured alcohol in the possession of an authorised or licensed denaturer, there is a difference between—

(a) the quantity (“the actual amount”) of the dutiable alcoholic liquor of any description in the denatured alcohol in his possession; and

(b) the quantity (“the proper amount”) of dutiable alcoholic liquor of that description which, according to any such accounts as are required to be kept by virtue of any regulations under section 77 above, ought to be in the denatured alcohol in his possession.

(2) Subsection (1) above shall not apply if the difference constitutes—

(a) an excess of the actual amount over the proper amount of not more than 1 per cent. of the aggregate of—

(i) the quantity of dutiable alcoholic liquor of the description in question in the balance of dutiable alcoholic liquor struck when an account was last taken; and

(ii) the quantity of dutiable alcoholic liquor of that description which has since been lawfully added to the denaturer’s stock;

(b) a deficiency such that the actual amount is less than the proper amount by not more than 2 per cent. of that aggregate.

(3) If, where subsection (1) above applies, the actual amount exceeds the proper amount, the relevant amount of any dutiable alcoholic liquor of the description in question which is in the possession of the denaturer shall be liable to forfeiture; and for this purpose the relevant amount is the amount corresponding to the amount of the excess or such part of that amount as the Commissioners consider appropriate.

(4) If, where subsection (1) above applies, the actual amount is less than the proper amount, the denaturer shall, on demand by the Commissioners, pay on the amount of the deficiency, or on such part of it as the Commissioners may specify in the demand, the duty payable on dutiable alcoholic liquor of the description comprised in the deficiency.

(5) If any person—

(a) supplies to another, in contravention of any regulations under section 77 above, any denatured alcohol containing dutiable alcoholic liquor of any description, or

(b) uses any such denatured alcohol in contravention of any such regulations,

that person shall, on demand by the Commissioners, pay on the amount of dutiable alcoholic liquor of that description comprised, at the time of its supply or use, in the denatured alcohol that is so supplied or used, or on such part of it as the Commissioners may specify, the duty payable on dutiable alcoholic liquor of that description.

(6) Any supply of denatured alcohol to a person who—

(a) by virtue of any regulations under section 77 above is prohibited from receiving it unless authorised to do so by or under the regulations, and

(b) is not so authorised in the case of the denatured alcohol supplied to him,

shall be taken for the purposes of subsection (5) above to be a supply in contravention of those regulations.

(7) A demand made for the purposes of subsection (4) or (5) above shall be combined, as if there had been a default such as is mentioned in that section, with an assessment and notification under section 12 of the Finance Act 1994 (assessments to excise duty) of the amount of duty due in consequence of the making of the demand.

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