UK raises alcohol duty 4.55% from Feb 2027, imports included
In its Autumn Budget 2026, the UK government decided to raise Alcohol Duty on all alcohol by 4.55%, in line with the Retail Prices Index (RPI), from February 1, 2027. Because imported alcohol is covered too, it adds to the tax burden for Japanese exporters of drinks to the UK.
Key points
- Applies from February 1, 2027; the 4.55% increase covers all alcohol including beer, wine, spirits and cider
- Examples of the new rates per litre of pure alcohol: beer (3.5%-8.5% ABV) rises from GBP 22.58 to GBP 23.61, and drinks at 22% ABV or above from GBP 33.99 to GBP 35.54
- The maximum Small Producer Relief discount rises from 23% to 25%, at an expected cost of GBP 10 million a year from 2027/28 to 2031/32
Background
The change keeps the ABV-based duty system introduced in 2023 and only adjusts the rates for inflation.
The government says expanding Small Producer Relief is meant to help small craft breweries, cider makers, wineries and distilleries stay competitive. (Based on a JETRO Business Brief.)
What it means for shops
The duty applies to imported as well as UK-made alcohol, so Japanese whisky, shochu, sake and beer shipped to the UK face a higher tax burden. Some exporters may need to revisit UK pricing and trade terms.
What shops should do
- If you export alcohol to the UK, talk early with your UK importer or buyer about prices and terms from February 2027
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Summaries are written by Seiichi Studio based on the original releases. Always check the source for the exact details.