UK Govt smooths path to distillery licensing

The UK Government’s HM Revenue & Customs department (HMRC) is reviewing guidance for the licensing of distilleries, set to make it easier for distillers, rectifiers and compounders to become licensed producers.

Set out in draft in Notice 39: Spirits Production, the new guidance will bring together HMRC policies for the licensing and approval of all types of spirits production, covering gin and other spirits alongside “traditional” distillation for the first time.

The proposed changes will make the application process clearer and easier to follow, spelling out requirements and simplifying some of the required documents.

Alan Powell, co-founder of the recently-formed British Distillers Alliance, welcomed the proposed changes: “Notice 39 includes clear and fair guidance as to how to make a business case to be licensed as a distiller, together with certainty that HMRC will give approval in principle to an application where the details are not finalised but the overall plan is credible and the persons involved are “fit and proper”.

“We very much welcome this guidance and have made a number of recommendations to further clarify other procedures set out in the Notice or remove conditions completely.”

He added that the organisation has committed to working collaboratively with HMRC to produce effective guidance.

It is expected the move will particularly benefit smaller producers and microdistilleries as interest in “craft” spirits continues. In 2015, 49 distilleries opened across the UK.