Finance Act 2024

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Chapter 2

Miscellaneous

Amendment of Chapter 1 of Part 2 of Finance Act 2003 (alcohol products tax)

69. (1) The Finance Act 2003 is amended—

(a) by the insertion of the following section after section 78B:

“Relief for small producers of other fermented beverages

78D. (1) In the case of—

(a) cider and perry exceeding 2.8% vol, and

(b) subject to subsection (2), other fermented beverages, other than cider and perry,

that are subject to alcohol products tax, a relief of half the amount of alcohol products tax paid on such beverages shall, subject to subsection (3) and to such conditions as the Commissioners may prescribe or otherwise impose, be granted on a combined total quantity of such beverages as are referred to in paragraphs (a) and (b) not exceeding 8,000 hectolitres in a calendar year, produced by a producer of other fermented beverages—

(i) where the combined total quantity of beverages referred to in paragraphs (a) and (b) and produced by that producer in the previous year has not exceeded 10,000 hectolitres,

(ii) which is legally and economically independent of any other producer of other fermented beverages,

(iii) the premises of which are situated physically apart from those of any other producer of other fermented beverages, and

(iv) where less than 50 per cent of the other fermented beverages produced by that producer in the previous calendar year have been produced under a licence, franchise or contract arrangement for another producer of other fermented beverages.

(2) (a) In the case of beverages referred to in subsection (1)(b), the relief under subsection (1) shall apply where—

(i) such beverages are obtained from the fermentation of fruits, berries, vegetables, a solution of honey in water or from the fermentation of the fresh juice or concentrated juice obtained from such fruits, berries, vegetables, or solution, as the case may be, and

(ii) no other alcohol or alcohol product has been added for the purpose of the production of such beverages.

(b) For the purposes of paragraph (a), where the addition of alcohol to dilute or dissolve flavourings is in a dose strictly necessary such that the alcoholic strength does not increase by more than 1.2% vol, this shall not be considered as the addition of alcohol for the purpose of the production of beverages referred to in subsection (1)(b).

(c) In the case of beverages referred to in subsection (1)(b), the relief under subsection (1) shall not apply where the addition of flavourings referred to in paragraph (b) significantly alters the character of the original product.

(3) Relief under subsection (1) shall be granted by the Commissioners either by means of remission or repayment.

(4) (a) Subject to paragraph (b), relief under subsection (1) does not apply to any other fermented beverages produced for another producer of other fermented beverages under a licence, franchise or contract arrangement.

(b) Notwithstanding paragraph (a), where other fermented beverages are produced by a producer of other fermented beverages under a licence, franchise, contract or other cooperation arrangement with one or more other producers of other fermented beverages, and where—

(i) such producer and each of the producers with which that producer has such an arrangement satisfy the criteria referred to in subparagraphs (i), (ii) and (iii) of subsection (1), and

(ii) the combined total quantity of the other fermented beverages produced in the previous calendar year, by such producer and the producers with which that producer has such an arrangement, has not exceeded 15,000 hectolitres,

then subsection (1)(iv) does not apply, and such other fermented beverages qualify for relief under subsection (1).

(5) (a) For the purposes of subsection (1)(ii), a producer of other fermented beverages is not considered to be legally and economically independent of another producer of other fermented beverages where such producers are directly or indirectly owned or partly owned—

(i) by the same person, or

(ii) by associated companies within the meaning of section 432 of the Taxes Consolidation Act 1997 or by legal entities corresponding to such associated companies.

(b) Notwithstanding subsection (1)(ii) and paragraph (a), where a person referred to in paragraph (a)(i) or (ii) directly or indirectly owns two or more producers of other fermented beverages and the combined total quantity of other fermented beverages produced by such producers in the previous calendar year has not exceeded 10,000 hectolitres, they may be treated for the purposes of this section as a single producer of other fermented beverages which is legally and economically independent of any other producer of other fermented beverages.

(6) (a) Claims for repayment under subsection (3) shall be made in such form as the Commissioners may direct and shall be in respect of payments of alcohol products tax made within a period of 3 calendar months beginning on the first day of January, April, July or October.

(b) A repayment may not be made under this section unless the claim is made within 6 months following the end of each such period or within such longer period as the Commissioners may, in any particular case, allow.”,

and

(b) by the repeal of section 78C.

(2) Subsection (1) shall come into operation on such day or days as the Minister for Finance may by order or orders appoint and different days may be appointed for different purposes or different provisions.