‘Complex’ post-Brexit tax rules means price rises for UK wine drinkers

Post-Brexit tax complexities will increase UK wine prices, with the Wine Society criticizing the proposed alcohol duty reforms as illogical and potentially impractical.

UK wine enthusiasts may face a price surge of at least 40 pence per bottle due to the government's decision to proceed with intricate post-Brexit tax adjustments despite the industry's opposition.

Majestic Wine's CEO, John Colley, has warned that the overhaul scheduled for February 2025 would expand wine tax categories from one to thirty, imposing significant administrative costs.

The Treasury's new system will link tax rates to alcohol content, a measure introduced last August during Rishi Sunak's tenure as Chancellor, leading to incremental duty hikes based on alcohol by volume (ABV).

Despite an initial 18-month adaptation period where a fixed duty rate is applied, the full implementation is set to take effect afterward.

Facing expected higher costs, the wine sector has lobbied the government for a permanent extension of existing rules, but to no avail. Industry leaders predict substantial price jumps, predominantly for red wines due to their typically higher ABV.

These changes, they argue, will impose overwhelming red tape for sellers, with increased staff workload proving unsustainable for many, including smaller retailers.

Amid concerns, even some Brexit-supporting MPs have voiced support for maintaining the current duty system. While the Treasury points out past duty freezes, the industry contends that simplifying regulations is critical, urging the government to maintain a less complicated tax procedure to prevent costly repercussions.