The Finance Act 2009 (Section 101) (Alcohol Duty) (Appointed Day) Order 2025
This Order, made under the Finance Act 2009, sets September 1st, 2025, as the commencement date for applying late payment interest to alcohol duty owed to Her Majesty's Revenue and Customs (HMRC).
The interest regime is defined in section 101 of the Finance Act 2009 and applies to sums due under any enactment but paid late.
The applicable interest rate is detailed in the Taxes and Duties, etc (Interest Rate) Regulations 2011.
Arguments For
Implementing previously announced policy, ensuring consistent application of late payment interest across various tax areas.
Providing clarity and certainty for businesses concerning the application of late payment interest for alcohol duty, improving compliance and revenue collection.
Aligning alcohol duty with the existing late payment interest regime for other taxes, creating a more streamlined and equitable system.
Based on the existing legal framework of the Finance Act 2009, building on previously established mechanisms for late payment interest.
Arguments Against
Potential for increased administrative burden on HMRC in managing and collecting late payment interest for alcohol duty.
Possible concerns about the impact of late payment interest on smaller businesses and breweries, potentially affecting profitability or posing cash flow challenges.
Limited scope for considering alternative approaches that might promote timely payment through incentives rather than solely relying on penalties.
Lack of detailed analysis in the explanatory note on impacts on specific industry segments or the overall alcohol industry.
- Citation This Order may be cited as the Finance Act 2009 (Section 101) (Alcohol Duty) (Appointed Day) Order 2025.
This section provides the official short title for the legal instrument: the Finance Act 2009 (Section 101) (Alcohol Duty) (Appointed Day) Order 2025.
This title allows for easy reference in future legal documents and communications.
- Interpretation In this Order, “alcohol duty” has the meaning given in section 47 of the Finance (No. 2) Act 2023 (alcohol duty: charge).
This section defines the term "alcohol duty" as it is used within the Order.
The definition references section 47 of the Finance (No. 2) Act 2023, which contains the precise legal definition of alcohol duty for the purpose of this legislation.
- Appointed Day 1st September 2025 is appointed as the day on which section 101 of the Finance Act 2009 (late payment interest on sums due to HMRC) comes into force for the purposes of alcohol duty.
September 1st, 2025, is officially designated as the date when section 101 of the Finance Act 2009 — concerning late payment interest on sums owed to HMRC — takes effect for alcohol duty.
Before this date, late payment interest did not apply to alcohol duty under this section of the Act.
Explanatory Note (This note is not part of the Order) This Order appoints 1st September 2025 as the day on which the interest regime set out in section 101 of the Finance Act 2009 (c. 10) on late payment interest comes into force for the purposes of alcohol duty. Section 101 has already been brought into force for other purposes. Section 101 applies late payment interest to any sum due by virtue of an enactment to His Majesty’s Revenue and Customs but paid late. The current applicable rate in respect of late payment interest is set out in the Taxes and Duties, etc (Interest Rate) Regulations 2011 (S.I. 2011/2446). These Regulations were made in exercise of the powers conferred by section 103 of the Finance Act 2009. A Tax Information and Impact Note has not been prepared for this instrument as it gives effect to previously announced policy and is an appointed day order.
The explanatory note clarifies that the order's purpose is to specify the effective date for late payment interest on alcohol duty under section 101 of the Finance Act 2009.
It explains that section 101 already applies to other taxes, and clarifies that the interest rate is defined elsewhere (the Taxes and Duties, etc (Interest Rate) Regulations 2011).
Finally, it notes that a separate tax impact assessment is unnecessary because this is implementing already-announced policy.
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