Lower duty rates for low alcohol wines

A new tax system for wine in the UK favours lower alcohol wines with lower duty rates, with wines with alcohol less than 11.5% seeing a big saving on the duty, while those wines tipping the scales above 14.5% are to be slapped with higher tax.

The new duty rates will see a flat rate for wine between 11.5% and 14.5% at £2.67 a bottle, but for wines outside this range the duty rate changes with the percentage of alcohol in the bottle.

The most common style of lower alcohol wine in British supermarkets is probably White Zinfandel, for example Blossom Hill White Zinfandel has an alcohol rate of 11% and will attract tax of £2.35, that is a 32p saving compared with a wine at 11.5% abv. A German Spatlese at 8.4% abv will see the rate drop to £1.56, which is £1.12p less than a wine between 11.5 and 14.5%.

Big, high alcohol entry level wines are going to be badly affected. A wine at 15% alcohol will see the duty jump to £3.21 versus £2.67 for 14.5%. That's a difference of 54p and is significantly more than the 30p worth of actual wine in an average £5 bottle of wine.

The duty changes come into force on the 1st August 2023 but with the flat rate for wines between 11.5% and 14.5% only applicable until February 2025.