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DFS4190 | Technical Guidance: How are losses treated?

From HM Revenue & Customs · Duty Free Spirits Guidance

The trader must record:

  • losses in storage;

  • accidental losses in processes;

  • investigations into the losses, including any management decisions taken; and

  • report more serious losses and deficiencies.

You should agree with the trader a level at which a loss should be reported. Obviously, a large loss for one company will be negligible for another.

Any losses for which the trader cannot provide a satisfactory explanation will be liable to duty (see DFS3050 and DFS3060)