Excise duty – post duty point dilution

The measure

Following a review by HMRC launched at Autumn Budget 2017, and in order to ensure a level playing field with other duty regimes, the government will legislate to ban post duty point dilution from April 2020. Post duty point dilution is the practice of diluting wine and made-wine after excise duty has been calculated.


Who will be affected?

Businesses responsible for accounting for excise duty upon production and bottling of alcoholic beverages.


When will the measure come into effect?

Post duty point dilution will be banned from April 2020.

Our view

This is in line with expectations following Autumn Budget 2017.