Tax on wine in the UK could change markedly in 2023 if alcohol duty reform plans announced by chancellor Rishi Sunak get the green light.
For now, Sunak used his autumn 2021 Budget speech to again freeze duty tax on wine and other alcohol under the current system, in a move welcomed by trade bodies.
Wine is enjoying the longest tax freeze in 25 years, although campaign group Wine Drinkers UK says duty tax has risen by 39% since 2010. The country is known for having some of the world’s highest alcohol duty rates.
And duty isn’t the only thing that affects prices. The average cost of a bottle of wine has still risen in the past year, said the Wine & Spirit Trade Association (WSTA) recently.
Duty tax on still wines: Is it better to spend more?
Many in the wine trade have long argued that if you increase your spend on wine – even by a little – then you are in theory getting better value for money in the glass.
Duty tax is equivalent to £2.23 per 75cl bottle on still wines above 5.5% abv and up to 15% abv inclusive, as the Bibendum graphic above shows.
In theory, that means a higher proportion of the cost of a £7.50 or £10 bottle filters back to the winemaking.
Bibendum’s graphic shows more than 50% of the money spent on a £5 bottle of still wine goes straight to the government’s coffers as duty and VAT, but this falls to 39% on a £10 bottle.
It’s not an exact science, because costs like shipping, marketing and retailer profit margins will vary.
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