Below Cost Ban – New Implementation Date

After gaining approval from both houses of Parliament, the new order banning the sale of alcohol below the cost of duty plus VAT was made today (14/5/14) and will take effect on 28 May 2014.  The implementation of the order was delayed “due to unforeseen delays in the Parliamentary process” earlier this year.


From the 28th of May this year, a new mandatory licence condition will be introduced that will ban the sale of alcohol below cost of duty +VAT.


New Mandatory Condition

The new mandatory licence condition is set out under schedule 1 of the order – “A relevant person shall ensure that no alcohol is sold or supplied for consumption on or off the premises for a price which is less than the permitted price.”



The Government has produced a calculator to help regulators and the trade with the new pricing requirement.


The HMRC website contains more information on alcohol duty rates.



The Government has also issued guidance to help regulators and the trade with the implementation of the new mandatory licence condition.