20th Nov 2017 - 10:20
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Abstract
The HMRC has published draft regulations for the Soft Drinks Industry Levy - set to apply to “all soft drinks packaged in or imported to the UK with added sugar” from 6 April 2018.
As part of the government’s childhood obesity action plan, businesses that “produce, package or bring into the UK soft drinks with added sugar” will need to register and pay a levy of 18p per litre, or 24p per litre for drinks containing 8 grams or more of sugar per 100ml, if|:
- A drink has as a content of 1.2% alcohol by volume or less
- It’s either ready to drink, or to be drunk it must be diluted with water, mixed with crushed ice or processed to make crushed ice, mixed with carbon dioxide or a combination of these
- It’s packaged ready for sale
- It has had sugar added during production, including pure cane sugars like sucrose and glucose as well as substances (other than fruit juice, vegetable juice and milk) that contain sugar, such as honey
- It contains at least 5 grams (g) of sugar per 100 millilitres (ml) in its ready to drink or diluted form
Companies that produce less than one million litres of liable drink in the relevant tax year, and alcohol replacement drinks (i.e. alcohol-free beer and wine) will be exempt.
The draft regulations are available to view here: https://www.gov.uk/government/consultations/draft-legislation-soft-drinks-industry-levy with consultation closing on 8 December.