HMRC confirms no duty on low-ABV cooking alcohols
Following a recent tribunal ruling, HMRC has clarified that cooking alcohols with 5% ABV or less are exempt from alcohol duty under the Alcoholic Ingredients Relief scheme.
HMRC has issued new guidance on the treatment of cooking alcohols, confirming that certain products with an ABV of 5% or less will not be subject to alcohol duty.
The update follows a First-tier Tribunal decision in the case of Gourmet Classic Limited v HMRC, made on 25 February 2025. The ruling clarified that cooking alcohols made undrinkable through the addition of salt or other seasonings–typically at a concentration of at least 5g of salt per litre–are considered food, and therefore classed as “eligible articles” under the Alcoholic Ingredients Relief (AIR) scheme.
The AIR scheme allows businesses to reclaim alcohol duty on products used in food, provided the final product contains no more than 5 litres of alcohol per 100kg.
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Duty relief for ≤5% ABV cooking alcohols
Cooking alcohols of 5% ABV or lower now qualify for repayment of duty under the AIR scheme. Importers of such products into the UK will not need to pay alcohol duty. UK producers using duty-suspended alcohol in an excise warehouse will also not be liable for duty when the products leave the warehouse.
Where qualifying cooking alcohols are produced using duty-paid alcohol, the duty can also be reclaimed.
Stronger cooking alcohols–those above 5% ABV–do not qualify for AIR and remain subject to alcohol duty. However, if they are later used to manufacture an eligible food product, the duty paid may still be reclaimed, provided all AIR scheme conditions are met.
Compliance and claims
HMRC reminded businesses that customs processes for importing and exporting cooking alcohols still apply. Claims for alcohol duty relief must be supported with evidence, and duty paid on the alcohol used in cooking products can only be claimed back once.
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