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Alcohol Duty – Wine and Made-wine, post duty point dilution

Thursday, 30 July 2020

As previously notified in a news release issued on the 25March 2020, the Alcoholic Liquor Duties Act 1986 (Amendment) Order 2020 came into operation on 30 July 2020, but has effect from 1 April 2020.

This Order inserts a new section 51ZA into the Alcoholic Liquor Duties Act 1986 to introduce sanctions for post duty point dilution of wine or made-wine which, if carried out before the duty point would have resulted in a higher amount of duty being payable.

Excise duty on wine and made-wine is calculated on the volume and strength of the product.  Calculating the duty and then increasing volume and reducing strength by dilution after the duty point, means that the amount of duty payable on the undiluted wine or made-wine can be less than that which would be calculated on the larger volume of the diluted final product.

From 1 April 2020, wine and made-wine producers will not be able to use post duty point dilution (‘PDPD’) to reduce the amount of excise duty they must pay.  PDPD is prohibited for all other alcohol products, and this amendment will ensure fairness and equity for all alcohol producers.

The sanctions measures being introduced include civil penalties and forfeiture of the diluted product.

A made-wine is an alcoholic drink that is not classed as a spirit, beer, wine of fresh grape or cider.  Examples include fruit wines and flavoured ciders.

Further details can be obtained by contacting the Advice Centre on 648130 or email

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