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HMRC introduces change to soft drinks industry levy

The Soft Drinks Industry Levy (SDIL) applies to packaged soft drinks with added sugar containing at least 5g of sugars per 100ml of drink. Producers, manufacturers, and importers of in-scope soft drinks must register, report, and pay the levy on the volume of liable soft drinks packaged in, and imported into, the United Kingdom.

Orange Mango-fruit-juice- in tall glass to show the soft drinks industry levy

HM Revenue & Customs has introduced a minor change to the SDIL. The measure will amend the definition of a soft drink which is liable to the tax. The Soft Drinks Industry Levy will also now include packaged concentrates which are mixed with sugar at the point the drink is dispensed from a fountain machine.

This measure will bring consistency across the soft drinks industry by making all packaged concentrates used in fountain machines, regardless of which stage sugar is added, in the scope of the Soft Drinks Industry Levy. Research indicates that the supply of these fountain machines is limited to a small number of producers in the UK, indicating the impact of the change to be minimal. Existing SDIL rules, including registration, rates, accounting, and payment, will now apply to producers and importers of concentrates manufactured for that purpose.

The measure took effect from 1 April 2023.

How we can help

If you need any help understanding the Soft Drinks Industry Levy, please contact Richard Naish or any of the other members of the Food and Drink team.