Finance Act 2022

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Amendment of Chapter 1 of Part 2 of Finance Act 2003 (alcohol products tax)

48. (1) The Finance Act 2003 is amended—

(a) in section 78A—

(i) in subsection (1)(a), by the substitution of “75,000 hectolitres” for “50,000 hectolitres”,

(ii) in subsection (3)(b)(ii), by the substitution of “150,000 hectolitres” for “100,000 hectolitres”, and

(iii) in subsection (4)(b), by the substitution of “75,000 hectolitres” for “50,000 hectolitres”,

(b) in section 78B, by the substitution of the following subsection for subsection (1):

“(1) A producer of alcohol products established in the State availing of reduced rates of duty in accordance with Article 4, 9a, 13a, 18a or 22 of the Directive in another Member State shall, in accordance with such conditions as the Commissioners may prescribe, provide declarations as to—

(a) the compliance of the producer with the criteria set out in Article 4, 9a, 13a, 18a or 22 of the Directive, as may be applicable, and

(b) the total annual production of the producer in the previous year.”,

and

(c) by the insertion of the following section after section 78B:

“Relief for small producers of cider and perry

78C. (1) In the case of cider and perry exceeding 2.8% vol but not exceeding 8.5% vol that is subject to alcohol products tax, a relief of half the amount of alcohol products tax paid on such cider and perry shall, subject to subsection (3) and to such conditions as the Commissioners may prescribe or otherwise impose, be granted on a combined total quantity of cider and perry not exceeding 8,000 hectolitres in a calendar year, produced by a producer of cider and perry—

(a) where the combined total quantity of cider and perry produced by that producer in the previous year has not exceeded 10,000 hectolitres,

(b) which is legally and economically independent of any other producer of cider and perry,

(c) the premises of which are situated physically apart from those of any other producer of cider and perry, and

(d) where less than 50 per cent of the cider and perry produced by that producer in the previous calendar year has been produced under a licence, franchise or contract arrangement for another producer of cider and perry.

(2) Relief under subsection (1) shall be granted by the Commissioners either by means of remission or repayment.

(3) (a) Subject to paragraph (b), relief under subsection (1) does not apply to any cider and perry produced for another producer of cider and perry under a licence, franchise or contract arrangement.

(b) Notwithstanding paragraph (a), where cider and perry is produced by a producer of cider and perry under a licence, franchise, contract or other cooperation arrangement with one or more other producers of cider and perry, and where—

(i) such a producer and each of the producers with which it has such an arrangement satisfy the criteria set down in paragraphs (a), (b) and (c) of subsection (1), and

(ii) the combined total quantity of the cider and perry produced in the previous calendar year, by such producer and the producers with which it has such an arrangement, has not exceeded 15,000 hectolitres,

then subsection (1)(d) does not apply, and such cider and perry qualifies for relief under subsection (1).

(4) (a) For the purposes of subsection (1)(b), a producer of cider and perry is not considered to be legally and economically independent of another producer of cider and perry where such producers are directly or indirectly owned or partly owned—

(i) by the same person, or

(ii) by associated companies within the meaning of section 432 of the Taxes Consolidation Act 1997 or by legal entities corresponding to such associated companies.

(b) Notwithstanding subsection (1)(b) and paragraph (a), where a person referred to in paragraph (a)(i) or (ii) directly or indirectly owns two or more producers of cider and perry and the combined total quantity of cider and perry produced by those producers in the previous calendar year has not exceeded 10,000 hectolitres, they may be treated for the purposes of this section as a single producer of cider and perry which is legally and economically independent of any other producer of cider and perry.

(5) (a) Claims for repayment under subsection (2) shall be made in such form as the Commissioners may direct and shall be in respect of payments of alcohol products tax made within a period of 3 calendar months beginning on the first day of January, April, July or October.

(b) A repayment may not be made under this section unless the claim is made within 6 months following the end of each such period or within such longer period as the Commissioners may, in any particular case, allow.”.

(2) Subsection (1) shall come into operation on such day or days as the Minister for Finance may by order or orders appoint and different days may be appointed for different purposes or different provisions.