Alcohol duty is a tax that affects businesses involved in making, importing and selling alcoholic drinks. Changes to the duty rules can have implications for producers, pubs, restaurants, shops and the people who buy alcohol.
This guide explains the February 2027 changes, how the new rates compare with the current ones and what they could mean for shoppers, businesses and people bringing alcohol back from holiday.
Change at a glance
Alcohol duty rates increase from 1st February 2027
What changes?
Standard Alcohol Duty rates rise by 4.55%, in line with inflation. The rules for Small Producer Relief also become more generous for qualifying smaller producers.
Change date
1st February 2027
Where does it apply?
Across the UK, including Scotland, England, Wales and Northern Ireland. It applies to relevant alcoholic drinks produced in the UK and imported into the UK.
Who is affected?
People buying alcohol, plus producers, importers, wholesalers, pubs, restaurants and retailers. Any effect on shop or pub prices will depend on business decisions.
What is changing with alcohol duty?
Alcohol Duty is a tax charged on alcoholic products. The amount depends on the type of drink and how much pure alcohol it contains. ABV means alcohol by volume: the percentage of a drink that is pure alcohol. The standard rates are due to rise by 4.55% from 1st February 2027, in line with the Retail Price Index (RPI).
The increase applies to a range of drinks, including beer, cider, wine, spirits and other alcoholic products. It is not a fixed charge per bottle or pint. A stronger or larger drink generally contains more pure alcohol, so the duty calculation will be different.
How much will alcohol duty increase?
The figures below show selected standard duty rates before and after the increase. They are the duty charged for each litre of pure alcohol in the product, not the amount added directly to the price of a bottle or pint.
| Drink category | Until 31 Jan 2027 | From 1 Feb 2027 |
|---|---|---|
| Alcoholic products, 0% to 1.2% ABV | £0.00 | £0.00 |
| Alcoholic products, 1.3% to below 3.5% ABV | £9.96 | £10.41 |
| Still cider and perry, 3.5% to below 8.5% ABV | £10.39 | £10.86 |
| Sparkling cider and perry, 3.5% to 5.5% ABV | £10.39 | £10.86 |
| Beer, 3.5% to below 8.5% ABV | £22.58 | £23.61 |
| Spirits, wine and other fermented products, 3.5% to below 8.5% ABV | £26.61 | £27.82 |
| Sparkling cider and perry, above 5.5% to below 8.5% ABV | £26.61 | £27.82 |
| All alcoholic products, 8.5% to 22% ABV | £30.62 | £32.01 |
| All alcoholic products, above 22% ABV | £33.99 | £35.54 |
Rates are charged per litre of pure alcohol in the drink, not per litre of the drink itself. Products at 1.2% ABV or below remain zero-rated. The rates shown are the standard rates; qualifying draught products and eligible small producers may pay reduced rates. The table shows the rates applying from 1st February 2027 to 31st January 2028.
What could the increase add to the cost of a drink?
The examples below show the approximate additional duty on familiar drink sizes, using the standard rates. They help illustrate the scale of the tax change, but they are not predictions of supermarket or pub prices.
568ml pint · 4% beer
About 2.3p
Additional duty on one pint.
750ml bottle · 12% wine
About 13p
Additional duty on one bottle, calculated using the 8.5% to 22% ABV rate.
700ml bottle · 40% spirits
About 43p
Additional duty on one bottle.
These are tax differences, not guaranteed price rises. Businesses decide whether to absorb the extra duty or pass some or all of it on to customers. Other costs and pricing decisions also affect what shoppers pay.
What is changing for smaller alcohol producers?
Small Producer Relief (SPR) gives qualifying small and some medium-sized alcohol producers a reduced rate of duty. It is not limited to breweries: it can cover producers of different types of alcoholic drinks, provided the products and premises meet HMRC’s conditions.
Drinks below 3.5% ABV
The discount taper becomes more generous, increasing the relief available to qualifying small producers of drinks below 3.5% ABV.
Drinks from 3.5% to 8.4% ABV
For qualifying products between 3.5% and 8.4% ABV, the discount used to calculate duty increases by RPI plus a further 10%. This gives eligible producers a bigger reduction in the duty they pay. It does not mean the duty rate itself falls by 10 percentage points.
To qualify, the products must be below 8.5% ABV, must not be produced under licence, and must be made on small producer premises where total annual production is below 4,500 hectolitres of pure alcohol. The production limit covers all products made on the premises, not just one drink or product line. HMRC has detailed rules for working out eligibility and the discount for each product.
Expected support for small producers
Around £10 million a year
The Government estimates the improved relief will provide around £10 million of support each year to more than 2,000 smaller alcohol producers across the UK. This is support for eligible businesses, not a guaranteed price reduction for customers.
Will beer, wine and spirits cost more from February 2027?
They might, but the duty increase does not set the price that customers must pay. The extra tax is part of the costs faced by producers and importers. Businesses may decide to pass some or all of that cost on, or absorb it themselves.
Supermarkets
Retailers decide whether to change shelf prices and by how much.
Pubs and restaurants
Businesses may take the extra cost into account when setting drink prices.
Drink producers
Producers may adjust wholesale prices, absorb costs or make other business decisions.
Are pub and draught drinks affected?
Yes. Beer and some other alcoholic drinks served from qualifying draught containers can receive a reduced rate of Alcohol Duty. This is why the duty rate for a qualifying draught pint can be lower than the rate for bottled or canned beer of the same strength.
The reduced rates are also increasing from 1st February 2027. The table shows the current and new rates for each qualifying draught category. The figures are charged per litre of pure alcohol in the drink, not per litre of the drink itself.
| Qualifying draught product | Current rate | From 1 Feb 2027 |
|---|---|---|
| Alcoholic products, 1.3% to below 3.5% ABV | £8.58 | £8.97 |
| Still cider and sparkling cider up to 5.5% ABV, 3.5% to below 8.5% | £8.95 | £9.36 |
| Beer, spirits, wine and other fermented products, 3.5% to below 8.5% ABV | £19.45 | £20.34 |
| Sparkling cider above 5.5% to below 8.5% ABV | £19.45 | £20.34 |
Qualifying draught products at 1.2% ABV or below remain zero-rated. Not every drink sold in a pub qualifies for draught relief: the product and container must meet HMRC’s conditions.
Draught relief
Pub and hospitality businesses can check HMRC’s guidance to confirm whether their products and containers qualify for the reduced draught rates.
Where does the alcohol duty increase apply?
The increase applies across the UK, including Scotland, England, Wales and Northern Ireland. It covers relevant alcoholic drinks produced in the UK and drinks imported into the UK.
Scotland
Applies
England
Applies
Wales
Applies
Northern Ireland
Applies
This is separate from minimum unit pricing in Scotland and Wales. Minimum unit pricing sets a legal minimum selling price for alcohol in those countries. Alcohol Duty is a UK-wide tax on alcoholic products.
Will the alcohol duty increase affect alcohol brought back from holiday?
If you bring alcohol into Great Britain for personal use and go over your duty-free allowance, you must declare it and pay any tax and duty due. HMRC’s online declaration service can calculate the amount using simplified rates. These rates are charged per litre of drink, rather than per litre of pure alcohol, so they are different from the main Alcohol Duty rates shown earlier.
| Drink | Current rate | From 1 Feb 2027 |
|---|---|---|
| Beer | 95p | 99p |
| Still and sparkling wine | £3.52 | £3.68 |
| Cider | 48p | 50p |
| Sparkling cider up to 5.5% ABV | 48p | 50p |
| Sparkling cider above 5.5% and below 8.5% ABV | £1.86 | £1.95 |
| Other fermented products | £3.52 | £3.68 |
| Spirits | £12.75 | £13.33 |
Rates are per litre of drink and relate to the simplified excise duty calculation. The online service may also calculate customs duty and import VAT depending on the goods and circumstances.
What this means for travellers
The February change increases the simplified duty rates used when you declare alcohol above your allowance. It does not reduce the amount of alcohol you can bring into Great Britain without paying duty.
You must still declare alcohol if you exceed your personal allowance. The amount you pay depends on the products you bring in and how you declare them. HMRC has also announced a separate change to the categories used for travellers’ alcohol allowances. From 1st February 2027, cider will be included with beer, and sparkling wine with wine. The overall allowance limits remain unchanged. Read HMRC’s explanation of the travellers’ allowance changes.
Do customers or businesses need to do anything?
If you buy alcohol
There is nothing to apply for or change. You may see prices change, but increases are not automatic or fixed.
If you sell or produce alcohol
Businesses responsible for Alcohol Duty should use the new rates from 1st February 2027 and check whether they qualify for relief.
HMRC says the way businesses deal with the department will otherwise remain the same. Producers and sellers should check the official guidance for their products and circumstances.
Frequently asked questions
Quick answers about the February 2027 alcohol duty increase.
When does alcohol duty increase?
The new Alcohol Duty rates take effect on 1st February 2027.
How much is alcohol duty going up?
Standard duty rates increase by 4.55%, in line with RPI. The amount of extra duty depends on the drink’s type, strength and volume.
Will beer, wine and spirits become more expensive?
They could, but there is no fixed price rise for customers. Shops, pubs and other businesses decide whether to pass on the additional duty.
Does the change apply in Scotland?
Yes. Alcohol Duty is a UK-wide tax, so the new rates apply in Scotland as well as England, Wales and Northern Ireland.
What is Small Producer Relief?
It is a duty discount for qualifying smaller alcohol producers. The discount rules become more generous from 1st February 2027, but this does not guarantee lower prices for shoppers.
Are draught beers affected?
Yes. Reduced duty rates for qualifying draught products also increase. The drink and container must meet the rules for draught relief.
Will the change reduce the amount of alcohol I can bring back from holiday?
No. This duty change does not reduce the personal alcohol allowance. It changes the simplified excise duty rates used if you declare alcohol above your allowance through HMRC’s online service.
Will a pint of beer cost more from February 2027?
The additional duty on a typical 568ml pint of 4% beer is approximately 2.34p, or about 2.3p, using the standard beer rates. This is the extra duty attributable to the pint, not a required increase in the price charged by a pub.
Is alcohol duty increasing on spirits as well as beer and wine?
Yes. The 4.55% increase applies to all main Alcohol Duty rates, including spirits, beer, cider, wine and other fermented products. The amount of duty depends on the drink category and its strength.
Are low-alcohol and alcohol-free drinks affected?
Products at or below 1.2% ABV are zero-rated for Alcohol Duty. Drinks above 1.2% ABV can be liable for duty, depending on their strength and category. Qualifying small producers may also be eligible for Small Producer Relief on qualifying products below 3.5% ABV.
Do customers need to do anything?
No. Customers do not need to register or apply for anything. The new rates are dealt with by businesses in the alcohol supply chain.