The Soft Drinks Industry Levy applies to the production and importation of soft drinks containing added sugar. The levy applies to drinks with 5g or more of added sugar per 100ml. The Isle of Man Government has an agreement with the United Kingdom to keep the management and administration of indirect taxes aligned with the United Kingdom.
From 1 April 2026, the standard rate will increase from £1.94 to £2.08 per 10 litres of prepared drink. The standard rate is applied to drinks with sugar content between 5 grams (g) and up to 8g per 100ml.
The higher rate will increase from £2.59 to £2.78 per 10 litres of prepared drink. The higher rate is applied to drinks with sugar content equal to or greater than 8g per 100ml.
The increase is designed to help tackle childhood obesity by encouraging the reformulation of soft drinks to reduce levels of added sugar. From 1 January 2028 the levy will be extended to include more products, including sugary milk-based drinks.
Further guidance in relation to the soft drinks industry levy can be found on gov.uk.
Additional guidance is available on the Indirect Taxes page.
For further guidance or advice, please contact us on:
Email: customs@gov.im
Telephone: +44 1624 648100
(Monday to Friday 8:30am to 4:30pm)
