Government set to ban below-cost alcohol sales

Napthens - February 13th 2014

The Government has released details of its intentions to address the perceived issue of alcohol being sold for less than cost price.

The Government intends to ban the sale of alcohol for below cost and has defined “cost” as the level of alcohol duty for a product plus the value added tax payable on the duty element of the product price. It is proposed that the ban will take effect on 6 April this year in the form of additional mandatory conditions.

By way of examples:

  • A 440ml can of 4% ABV beer would cost no less than 41p
  • A 750ml bottle of 12.5% ABV wine would cost no less than £2.41
  • A 70cl bottle of 37.5% ABV vodka would cost no less than £8.89

A full copy of the Home Office Guidance can be viewed here.