This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.
News
HMRC sets out new spirits legislation to ease licence applications
HMRC has set out changes to the UK’s alcohol excise duty structure for spirits, making it easier for distillers to become licensed producers.
The proposed changed to Notice 39, which outlines what is required of a business seeking to become a licensed distiller, will benefit the increasing number of craft distillers setting up new businesses.
The proposed changes include making the application process easier to follow, clarifying the term “tax warehouse” and the application procedure to operate a distiller’s warehouse, and simplifying some of the required documents required by business owners when applying.
The document also helps to outline specific timelines for the application process, with 45 working days the standard time to complete an application and receive a licence.
“For the first time, a single HMRC public notice now covers the manufacture of gin and other spirits alongside “traditional” distilling of alcohol”, explains Alan Powell, a specialist in excise duty and co-founder of the newly formed British Distillers Alliance.
“When finalised, it will give clear guidance and direction not only to the industry but also to HMRC staff having to deal with the licensing and control of spirits producers”.
The HMRC has solicited feedback from trade bodies including the British Distillers Alliance, on how the guidelines might be improved. Powell has welcomed the opportunity for the trade to participate in making recommendations in how the process may be made clearer.
“We commit to work collaboratively with HMRC to produce an effective guidance document for both new applicants and established businesses. This exercise can also go some considerable way to map out a simplified system for the approval and control by HMRC of all alcohol production,” added Powell.
It is hoped the changed will better support the growing number of craft distillers emerging in the UK, to help support this growing industry,
In 2015 a total of 49 new distilleries opened across the UK, with that number rising to 117 in the last five years. The trend is being largely being driven by millennials seeking authentic craft spirits and supported by the growing popularity of gin. Exports have risen by 37% in the past five years, with sales to 139 countries, worth £1.76 billion.
Any members of the trade that would like support with spirits regulation, liscencing or customs issues can email Alan Powell at alan@apas1.orangehome.co.uk
I intend to buy a small holding there are some fruit trees that can be partly used for the spirits and partly for jam, what quantity is for domestic use and what is beginning of commercial use.
Do I need the license if is only for domestic use spirits production?
Good afternoon, myself and a couple of friends and looking into the possibility of strating a small craft gin. I have looked at the HMRC website and have to say, it leaves a number of questions unanswered…. For example the 18 Hectolitres??. We are only thinking of small quantities and nothing of this volume. is there some information somewhere that could assist us with the numerous questions we have???
Your assistance would be greatly appreciated
Hello, I wish to start a business producing and selling flavoured gins from home. I will NOT be distilling alcohol or producing it, but instead adding flavour to per exisiting purchased base spirit alcohol. Can you please tell me if i need a licence for to do this and also if I need a licence to sell it?
@Debra – you will need a compounders licence to do that, you can apply on the HMRC website with L5 form. You will also need to do an EX103 Excise Entry form. That will let you compound base spirit with new flavours without re-distilling (to redistill you need to get a rectifiers licence, same form L5). In order to sell it you will need a personal licence that will allow you to sell it at craft fairs etc providing you get an occasional licence for each occasion. You would need to get a premise licence and a personal licence to sell directly to people from your house/internet/shop, and registered with the Alcohol Wholesale Registration Scheme (AWRS) to sell to businesses. Hope this gives you some idea.
what is the cost of getting these liicences?
Hi, I am looking to start a bottled cocktail brand. Initially I will be bottling and pasteurising the drinks at home myself, the. Sending them to a fulfillment house. That fulfillment house will pack, pick and distribute based on website orders. I believe that negates my need for a personal or premise license as it is the fulfillment company who need those, unless I want to do events direct. But what other licenses and official forms do I need to complete to do this? It sounds like I need a compounding license but what else? Also where can I find information on legal requirements for bottle sizes, labelling information and any duties payable at any stage?
We have been manufacturing jelly shots with added alcohol – which is already duty paid purchased from wholesalers and cash and carry etc.
I understand we need a compounding license (as well as awrs). please advise on application process for compounders license as it appears
that it is mixed in with distillers license