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History · Seventeenth century to present

The history of duty on cider in Britain

Has cider always been taxed in Britain?

In short

No. Cider has moved in and out of the tax system repeatedly. It was charged under the excise from the seventeenth century, taxed disastrously at the point of production in 1763, relieved of duty in 1830, taxed again during the First World War, relieved again in the 1920s, and brought back into duty in 1976, where it has remained.

Since August 2023 cider has been taxed under the Alcoholic Products Duty framework, which charges by alcoholic strength in bands rather than by volume of liquid alone. Rates change with each Budget and are not reproduced here.

Excise, and why the method mattered

The English excise was established during the 1640s as a wartime expedient and became permanent. Cider and perry appear in excise schedules from the seventeenth century onwards, generally charged on retailers or on quantities entering trade rather than on every farm cellar.

The distinction between charging a maker and charging a seller is the recurring theme of this history. Almost every farm in the cider counties made cider, so a duty charged at production implied a right to inspect houses; a duty charged on sale did not. When governments forgot this they were reminded forcefully.

The 1763 Cider Act is the clearest case. It charged four shillings a hogshead on the maker, provoked riots and a constitutional argument across the western counties, and was repealed in 1766 in favour of a charge on retailers.

A century without duty

Duty on cider and perry was removed in 1830, in the same reforming budget that dismantled the beer duty and opened the retail beer trade. For the rest of the nineteenth century cider was, in duty terms, untaxed — a fact that shaped the drink’s cheapness and its place in rural wages.

This is the period in which cider is most firmly associated with the farm allowance and with the poorest rural drinking. Untaxed does not mean encouraged: the drink’s low price reflected low quality and low status as much as the absence of duty.

The First World War brought cider back into charge as the state extended control over alcohol generally, and the duty was removed again within a few years of the peace. That short episode left little mark beyond demonstrating that cider could be taxed when revenue was needed.

The modern regime

Duty on cider and perry was reintroduced in 1976, in the context of British membership of the European Communities and the harmonisation of indirect taxation. From that point cider was charged by volume of finished product within strength bands, and a legal definition of what counts as cider for duty purposes became necessary — which is where the minimum juice requirement in British law originates.

A long-standing exemption relieves the smallest producers from registration and duty below an annual production threshold, a provision that has kept farmhouse and hobby production lawful without a revenue relationship. This exemption is the reason a great deal of small-scale British cider making exists at all.

From 1 August 2023 alcohol duties were restructured under a single framework charging by litres of pure alcohol across strength bands, with a reduced rate for qualifying draught products and relief for small producers. The structure is set out by HM Revenue and Customs; the rates themselves are revised at Budgets.

Rates are not published hereDuty rates change at least annually and any figure quoted in a history page will be wrong before long. For current rates and thresholds, consult HM Revenue and Customs directly.

What duty has done to the drink

Tax structures shape products. A duty charged by volume of liquid rather than by alcohol content rewards low strength, and the long British practice of taxing cider by the litre within broad bands is part of the explanation for why mainstream cider settled at the strengths it did.

Definitions written for revenue purposes also travel outwards. The minimum juice content that determines whether a drink is cider for duty has become, in practice, the working definition of cider in the British market, and products falling outside it are taxed and labelled as something else.

The 2023 move to strength-based charging changes those incentives, and the effects on product formulation will take years to read. It is too early to write that history.

How this developed

Certainty is marked on each entry. Where the popular account runs ahead of the evidence, that is said rather than smoothed over.

  1. From the 1640s· probable

    The excise established

    Cider and perry appear in English excise schedules, generally charged in trade rather than on every maker.

  2. 1763–1766

    The Cider Act and its repeal

    Duty charged on the maker provokes sustained opposition in the western counties and is repealed in favour of a retail charge.

  3. 1830

    Duty removed

    Cider and perry duties are abolished alongside the reform of beer duty, and cider remains free of duty for most of a century.

  4. First World War and early 1920s· probable

    Taxed and untaxed again

    Duty is imposed during the war as part of wider alcohol control, and removed again shortly afterwards.

  5. 1976

    Reintroduction

    Cider and perry are brought permanently into duty, requiring a legal definition of cider and establishing the volume-and-strength-band structure.

  6. 1 August 2023

    Alcoholic Products Duty

    Alcohol duties are restructured to charge by litres of pure alcohol in strength bands, with draught relief and small-producer relief.

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