How UK alcohol duty is calculated
Since August 2023 every drink is taxed on its strength. You pay a rate per litre of pure alcohol (LPA), and the rate depends on the category and the ABV band.
Duty = litres of product × ABV ÷ 100 × rate per LPA
A 70cl bottle of 40% gin holds 0.7 × 0.40 = 0.28 litres of pure alcohol. At £33.99 per LPA that's £9.52 duty per bottle, or £57.10 on a case of six.
Is VAT charged on duty?
Yes. VAT is charged on the full selling price, which already includes duty, so every £1 of duty adds £1.20 to the shelf price before any margin is added on top.
What isn't included
Small Producer Relief lowers duty for qualifying small producers of drinks under 8.5% ABV. It depends on the producer's annual output, so it isn't in this calculator. If you use it, work it out with HMRC's own guidance.
How current are these rates?
Rates in force from 1 February 2026, checked against GOV.UK on 1 October 2026. See every rate on the duty rates page or at GOV.UK.