# Finance Act 2026, Section 89: Rates of duty

Extent: E+W+S+N.I.

(1) Part 2 of F(No.2)A 2023 (alcohol duty) is amended as follows.
(2) For Schedule 7 (main rates) substitute—
“Schedule 7
Rates of alcohol duty
TABLE 1
Alcoholic strength of alcoholic product
Rate of duty per litre of alcohol in the product
Less than 3.5%
£9.96
At least 3.5% but less than 8.5%
See Table 2
At least 8.5% but not exceeding 22%
£30.62
Exceeding 22%
£33.99
TABLE 2
Description of alcoholic product (of an alcoholic strength of at least 3.5% but less than 8.5%)
Rate of duty per litre of alcohol in the product
(a)Still cider
(b)Sparkling cider of an alcoholic strength not exceeding 5.5%
£10.39
Beer
£22.58
(a)Spirits, wine and other fermented products
(b)Sparkling cider of an alcoholic strength exceeding 5.5%
£26.61
”.
(3) For Schedule 8 (reduced rates for qualifying draught products) substitute—
“Schedule 8
Qualifying draught products: reduced rates
Description of alcoholic product
Rate of duty per litre of alcohol in the product
Alcoholic products of an alcoholic strength of less than 3.5%
£8.58
(a)Still cider of an alcoholic strength of at least 3.5%
(b)Sparkling cider of an alcoholic strength of at least 3.5% but not exceeding 5.5%
£8.95
(a)Beer, spirits, wine and other fermented products of an alcoholic strength of at least 3.5% (but less than 8.5%)
(b)Sparkling cider of an alcoholic strength exceeding 5.5%
£19.45
”.
(4) For Schedule 9 (duty discount for small producer alcoholic products)—
“Schedule 9
Small producer alcoholic products: duty discount
Part 1
Alcoholic products, other than qualifying draught products, of an alcoholic strength of less than 8.5%
Alcoholic products, other than spirits, of an alcoholic strength of less than 3.5%
Discount band
Start threshold (hectolitres)
End threshold (hectolitres)
Marginal discount (£)
Cumulative discount (£)
1
0
5
9.96
-
2
5
50
2.53
49.80
3
50
100
1.52
163.74
4
100
200
0.51
239.71
5
200
600
-
290.35
6
600
1000
-
290.35
7
1000
4500
-0.08
290.35
Spirits of an alcoholic strength of less than 3.5%
Discount band
Start threshold (hectolitres)
End threshold (hectolitres)
Marginal discount (£)
Cumulative discount (£)
1
0
5
6.58
-
2
5
50
2.53
32.92
3
50
100
1.52
146.86
4
100
200
0.51
222.82
5
200
600
-
273.47
6
600
1000
-
273.47
7
1000
4500
-0.08
273.47
Still cider of an alcoholic strength of at least 3.5%;sparkling cider of an alcoholic strength of at least 3.5% but not exceeding 5.5%
Discount band
Start threshold (hectolitres)
End threshold (hectolitres)
Marginal discount (£)
Cumulative discount (£)
1
0
5
10.39
-
2
5
50
2.64
51.95
3
50
100
1.59
170.87
4
100
200
0.53
250.15
5
200
600
-
303
6
600
1000
-
303
7
1000
4500
-0.09
303
Beer of an alcoholic strength of at least 3.5%
Discount band
Start threshold (hectolitres)
End threshold (hectolitres)
Marginal discount (£)
Cumulative discount (£)
1
0
5
20.67
-
2
5
112.5
11.48
103.34
3
112.5
225
10.33
1,337.72
4
225
450
5.74
2,500.33
5
450
900
3.44
3,792.12
6
900
1350
-
5,342.27
7
1350
4500
-1.70
5,342.27
Wine and other fermented products of an alcoholic strength of at least 3.5%; sparkling cider of an alcoholic strength exceeding 5.5%
Discount band
Start threshold (hectolitres)
End threshold (hectolitres)
Marginal discount (£)
Cumulative discount (£)
1
0
5
26.61
-
2
5
50
2.71
133.05
3
50
100
2.71
254.84
4
100
200
1.35
390.16
5
200
600
-
525.48
6
600
1000
-
525.48
7
1000
4500
-0.15
525.48
Spirits of an alcoholic strength of at least 3.5%
Discount band
Start threshold (hectolitres)
End threshold (hectolitres)
Marginal discount (£)
Cumulative discount (£)
1
0
5
21.65
-
2
5
50
2.71
108.26
3
50
100
2.71
230.04
4
100
200
1.35
365.36
5
200
600
-
500.68
6
600
1000
-
500.68
7
1000
4500
-0.14
500.68
Part 2
Qualifying draught products of an alcoholic strength of less than 8.5%
Alcoholic products, other than spirits, of an alcoholic strength of less than 3.5%
Discount band
Start threshold (hectolitres)
End threshold (hectolitres)
Marginal discount (£)
Cumulative discount (£)
1
0
5
8.58
-
2
5
50
2.18
42.90
3
50
100
1.31
141.06
4
100
200
0.44
206.50
5
200
600
-
250.12
6
600
1000
-
250.12
7
1000
4500
-0.07
250.12
Spirits of an alcoholic strength of less than 3.5%
Discount band
Start threshold (hectolitres)
End threshold (hectolitres)
Marginal discount (£)
Cumulative discount (£)
1
0
5
5.67
-
2
5
50
2.18
28.36
3
50
100
1.31
126.51
4
100
200
0.44
191.95
5
200
600
-
235.58
6
600
1000
-
235.58
7
1000
4500
-0.07
235.58
Still cider of an alcoholic strength of at least 3.5%; sparkling cider of an alcoholic strength of at least 3.5% but not exceeding 5.5%
Discount band
Start threshold (hectolitres)
End threshold (hectolitres)
Marginal discount (£)
Cumulative discount (£)
1
0
5
8.95
-
2
5
50
2.28
44.75
3
50
100
1.37
147.19
4
100
200
0.46
215.48
5
200
600
-
261.01
6
600
1000
-
261.01
7
1000
4500
-0.07
261.01
Beer of an alcoholic strength of at least 3.5%
Discount band
Start threshold (hectolitres)
End threshold (hectolitres)
Marginal discount (£)
Cumulative discount (£)
1
0
5
17.80
-
2
5
112.5
9.89
89.02
3
112.5
225
8.90
1,152.29
4
225
450
4.95
2,153.74
5
450
900
2.97
3,266.46
6
900
1350
-
4,601.73
7
1350
4500
-1.46
4,601.73
Wine and other fermented products of an alcoholic strength of at least 3.5%; sparkling cider of an alcoholic strength exceeding 5.5%
Discount band
Start threshold (hectolitres)
End threshold (hectolitres)
Marginal discount (£)
Cumulative discount (£)
1
0
5
19.45
-
2
5
50
1.98
97.25
3
50
100
1.98
186.27
4
100
200
0.99
285.18
5
200
600
-
384.09
6
600
1000
-
384.09
7
1000
4500
-0.11
384.09
Spirits of an alcoholic strength of at least 3.5%
Discount band
Start threshold (hectolitres)
End threshold (hectolitres)
Marginal discount (£)
Cumulative discount (£)
1
0
5
15.83
-
2
5
50
1.98
79.13
3
50
100
1.98
168.15
4
100
200
0.99
267.05
5
200
600
-
365.96
6
600
1000
-
365.96
7
1000
4500
-0.10
365.96
”.
(5) In consequence of the amendments made by the preceding subsections of this section, in Schedule 2 to the Travellers’ Allowances Order 1994 (which provides in certain circumstances for a simplified calculation of excise duty on goods brought into Great Britain)—
(a) in the entry relating to beer, in the second column, for “£0.91” substitute “£0.95”,
(b) in the entry relating to still wine, in the second column, for “£3.40” substitute “£3.52”,
(c) in the entry relating to sparkling wine, in the second column, for “£3.40” substitute “£3.52”,
(d) in the entry relating to cider, in the second column, for “£0.46” substitute “£0.48”,
(e) in the entry relating to sparkling cider of an alcoholic strength not exceeding 5.5% by volume, in the second column, for “£0.46” substitute “£0.48”,
(f) in the entry relating to sparkling cider of an alcoholic strength exceeding 5.5% but less than 8.5% by volume, in the second column, for “£1.80” substitute “£1.86”,
(g) in the entry relating to other fermented products, in the second column, for “£3.40” substitute “£3.52”, and
(h) in the entry relating to spirits, in the second column, for “£12.30” substitute “£12.75”.
(6) The amendments made by this section are treated as having come into force on 1 February 2026.

---
Source: https://www.legislation.gov.uk/ukpga/2026/11/section/89 (the official version)
Page: https://openlegislation.uk/finance-act-2026/section-89
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.