Citation, commencement and application

1.—(1) These Regulations may be cited as the Alcoholic Liquor Duties (Alcoholic Ingredients Relief) Regulations 2015.

(2) These Regulations come into force on 1st February 2016.

(3) These Regulations apply where dutiable alcoholic liquor is used as an ingredient in the production or manufacture of a product or converted into vinegar on or after the date on which these Regulations come into force.

(4) In paragraph (3)—

(a)“a product” refers to a product falling within section 4(2) of the Finance Act 1995(4),

(b)“dutiable alcoholic liquor” has the meaning given in section 1(1) of the Alcoholic Liquor Duties Act 1979(5).

Amendment of section 4 of the Finance Act 1995

2.—(1) Section 4 of the Finance Act 1995 is amended as follows.

(2) In subsection (3)—

(a)omit paragraphs (a) to (c), and

(b)in paragraph (e) omit the words “as to the matters mentioned in paragraphs (a) to (c) above and”.

(3) In subsection (5)—

(a)in paragraph (a) for “one month” substitute “three years”, and

(b)omit paragraph (b) and the preceding “and”.

(4) Omit subsection (6).

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend section 4 of the Finance Act 1995 (alcoholic ingredients relief). That section sets out conditions that need to be met in order to claim the repayment of duty on alcoholic liquor that has been incorporated into certain beverages or food products or has been converted into vinegar.

Regulation 1 provides for commencement and application; the Regulations apply where alcoholic liquor is used as an ingredient in the production or manufacture of certain products or converted into vinegar on or after 1st February 2016.

Regulation 2 amends section 4 so that claimants are no longer restricted to wholesaler manufacturers, there is no minimum amount for a repayment claim and except as the Commissioners may otherwise allow, the time limit for making a claim is no later than 3 years after the end of the period of 3 months during which the liquor was used.

These Regulations implement Article 27(1)(c) and (f) of Directive 92/83/EEC of 19th October 1992 on the harmonisation of the structures of excise duties on alcohol and alcoholic beverages(6).

A Tax Information and Impact Note covering this instrument is available on the gov.uk website at https://www.gov.uk/government/collections/tax-information-and-impact-notes-tiins.