Section 59 | Duty discount for small producer alcoholic products

(1)The duty discount, in relation to small producer alcoholic products in a discount band, is the amount (in £ per litre of alcohol) given by the formula in subsection (2) and rounded up to the nearest penny.

(2)The formula is—

(3)Where the alcoholic products are produced on non-group premises, the “relevant production amount” is—

(a)the alcohol production amount, in relation to those premises, for the previous year, or

(b)if that amount would be nil, the estimated alcohol production amount in relation to those premises for the current year.

(4)Where the alcoholic products are produced on group premises, the “relevant production amount” is —

(a)the aggregate of the alcohol production amount for the previous year, in relation to every set of premises in the production group on which alcoholic products were produced in that year, or

(b)if there are no premises in the production group on which alcoholic products were produced in the previous year, the aggregate of the estimated alcoholic production amount, in relation to every set of premises in the production group, for the current year.

(5)Small producer alcoholic products are in a particular discount band if the relevant production amount in relation to those products—

(a)exceeds the start threshold for that band, but

(b)does not exceed the end threshold for that band.

(6)The start and end thresholds, cumulative discount and marginal discount for a discount band are the figures shown—

(a)in relation to alcoholic products (other than qualifying draught products referred to in paragraph (b)) of a particular description, in the tables in Part 1 of Schedule 9, and

(b)in relation to qualifying draught products (in respect of which no election has been made under section 50(2)) of a particular description, in the tables in Part 2 of Schedule 9.