Spirits: Excise Duties

(asked on 23rd March 2020) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether he has made an assessment of the potential merits of reducing the duty on spirits as a result of producers switching production to hand sanitiser; and if he will make a statement.


Answered by
Kemi Badenoch Portrait
Kemi Badenoch
President of the Board of Trade
This question was answered on 21st April 2020

The government is aware that some distillers have offered to support their local communities by using their alcohol stocks to produce hand sanitiser. We are keen to support this and ensure that were alcohol is used for this purpose it does not attract excise duty.

Under new measures announced by HM Revenue & Customs on 23rd March, distillers and gin producers that hold alcohol within an excise warehouse may, without prior approval, use this to produce hand sanitiser without the payment of excise duty, providing the final product meets the World Health Organization’s formulation for Handrub.

Further information on all the easements announced by to support hand sanitiser production can be found at:

https://www.gov.uk/guidance/producing-hand-sanitiser-and-gel-for-coronavirus-covid-19

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