£21.01 per litre of pure alcohol
Alcohol by volume percentage
Reg. 07380272 · England & Wales · Est. 2010
Importing excise goods?
Get advice on excise duty obligations, warehouse keeper duties, and HMRC registration requirements.
Total Excise & VAT
£126.06
Excise Duty
£105.05
VAT on Excise
£21.01
Beer
£21.01 per litre of pure alcohol
What is excise duty?
Excise duty is a tax levied on specific goods produced or imported into the UK, including alcohol, tobacco, and fuel. It is charged in addition to VAT and is collected by HMRC. Unlike VAT, which is a percentage of value, excise duty is typically calculated per unit of product — for example, per litre of pure alcohol, per 1,000 cigarettes, or per litre of fuel.
What changed with the 2023 alcohol duty reform?
From 1 August 2023, the UK introduced a new alcohol duty system that replaced the previous regime. All alcoholic drinks are now taxed based on their alcohol by volume (ABV) strength. The new system uses a common tax rate per litre of pure alcohol for most products, with different rates for beer, cider, wine, and spirits. Draught relief provides a reduced rate for qualifying draught products served in pubs and restaurants, and small producer relief supports independent producers.
How does fuel duty work?
Fuel duty is charged on petrol, diesel, and other hydrocarbon fuels at the point of production or import. The current rate is 52.95p per litre for both unleaded petrol and diesel. This rate has been temporarily reduced — the standard rate was higher before the fuel duty cut introduced in Spring 2022. VAT at 20% is then added on top of the fuel price inclusive of excise duty, meaning consumers pay tax on tax.
What are the tobacco duty rates?
Cigarettes attract a specific duty of £294.54 per 1,000 cigarettes plus an ad valorem duty of 16.5% of the retail price. Hand-rolling tobacco is charged at £396.42 per kilogram. These rates are among the highest in Europe and are designed to discourage tobacco consumption. Tobacco duty is reviewed annually, typically in the Autumn Budget, and tends to rise above inflation through the “duty escalator” policy.
How does excise interact with VAT and customs duty?
Excise duty, VAT, and customs duty are three separate taxes that can all apply to the same product. For domestically produced goods, excise duty is charged first, and then VAT at 20% is applied on top of the price inclusive of excise duty. For imported goods, customs duty is charged on the CIF value, then excise duty is applied, and finally VAT is calculated on the total of the goods value, customs duty, and excise duty combined. This means consumers effectively pay VAT on the duty itself.
What are the duty-free allowances?
Travellers entering the UK from non-EU countries can bring limited quantities of alcohol and tobacco duty-free. The allowances are: 1 litre of spirits (or 2 litres of fortified wine), 4 litres of still wine, 16 litres of beer, 200 cigarettes (or 100 cigarillos, 50 cigars, or 250g of tobacco). These allowances are for personal use only — goods for resale or in excess of these limits are subject to full excise duty, customs duty, and VAT.
HMRC-Aligned: This calculator uses official 2025/26 excise duty rates published by HMRC. Actual liability may vary for draught products, small producer relief, or specific tobacco product classifications. Consult HMRC or a tax adviser for complex situations.
This calculator uses official rates and thresholds from:
Last verified: February 2026 · Tax year 2025/26. Results are indicative — consult a qualified accountant for personalised advice.
What excise duty is, how it works, and when you need to pay it
What is excise duty and who pays it?
Excise duty is a tax on certain goods made or brought into the UK. It covers alcohol, tobacco, and fuel. Manufacturers, importers, and warehouse keepers pay it to HMRC before the goods are sold. The cost is then passed on to you in the price you pay at the shop or petrol station. For example, on a £10 bottle of wine, around £2.67 is excise duty.
How much excise duty is on alcohol?
Since August 2023, alcohol duty is based on the drink's strength (ABV). The standard rate for drinks over 8.5% ABV is £28.74 per litre of pure alcohol. A pint of 5% beer (568ml) carries about £0.54 in duty. A 70cl bottle of 40% spirits has roughly £8.05 in duty. Lower-strength drinks pay less, and draught beer and cider get a reduced rate.
How is fuel duty calculated?
Fuel duty is a flat rate per litre, not a percentage. In 2025/26, it is 52.95p per litre for petrol and diesel. On a full 50-litre tank, that is £26.48 in fuel duty alone. VAT at 20% is then added on top of the total price including the duty, so you pay tax on tax. Fuel duty has been frozen or cut for over a decade.
What excise duty applies to tobacco?
Cigarettes carry a two-part duty: a flat rate of £298.58 per 1,000 cigarettes plus 16.5% of the retail price. For a pack of 20 costing £14, the excise duty is roughly £7.77. Hand-rolling tobacco is taxed at £396.06 per kg. These rates make UK tobacco among the most heavily taxed in Europe.
What happens if you bring goods from abroad?
If you travel from outside the UK, you can bring limited amounts duty-free: 200 cigarettes, 42 litres of beer, 18 litres of still wine, and 4 litres of spirits. Go over these limits and you must declare the goods and pay excise duty plus VAT. Failing to declare can mean your goods are seized and you could face a penalty.
What is a bonded warehouse?
A bonded warehouse is an HMRC-approved storage site where goods can be kept without paying excise duty. Duty is only due when the goods leave the warehouse for sale. This helps businesses manage cash flow, especially importers who store large quantities of alcohol or tobacco. You need an excise licence to operate one.
How does small producer relief work?
Small breweries, cider makers, and distillers can claim Small Producer Relief, which reduces their excise duty rate. To qualify, you must produce below certain volume limits — for example, under 4,500 hectolitres of beer per year. A small brewery producing 2,000 hectolitres could save thousands of pounds a year compared to paying the full rate.
How do you register and pay excise duty?
You register with HMRC as an excise trader through the UK Trade Tariff system. You file returns and pay duty monthly, usually by the 15th of the month following production or import. Late payments attract interest at the Bank of England base rate plus 2.5%. Most businesses use HMRC's online Excise Movement and Control System (EMCS) to track goods.
HMRC-Aligned: Based on 2025/26 HMRC rates and thresholds. For personal advice, speak to a qualified accountant or tax adviser.
Reviewed by M. Samiuddin Quadri, ACCA — Chartered Certified Accountant at Gladstone & Co. · Updated for the 2025/26 tax year.
Disclaimer: This calculator provides estimates based on current HMRC rates and thresholds for the 2025/26 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified accountant or tax adviser before making financial decisions. Read our terms