UK govt slashes licensing fees for GI spirits
His Majesty’s Revenue & Customs (HMRC) has announced it will replace the current fees associated with the Spirit Drinks Verification scheme with a lower flat rate, saving UK spirits producers up to 95%.
The Spirit Drinks Verification (SDV) scheme protects the reputation and authenticity of spirits with a geographical indication (GI) in the UK. As it stands, this applies to Scotch whisky, Irish whiskey, Irish cream, Irish poitín, single malt Welsh whisky, and Somerset cider brandy. There is currently a pending application in place for a GI for English whisky.
All spirits that fall under these categories are required to pay HMRC up to £11,410 (US$15,195) every two years in verification fees. However, from 1 July 2025 this rate will be lowered to a flat fee of £250 per facility and will be payable every two years. The fee will be in place until 30 June 2031.
This new flat fee will provide a minimum 45% cut in fees to all businesses registered under the scheme and save the average Scotch whisky producer £14,700 (US$19,576) between now and 2031.
Mark Kent, CEO of the Scotch Whisky Association (SWA), said: “We welcome the lowering of fees under the UK government’s Spirit Drinks Verification Scheme. For the past decade, the Scotch whisky industry has been paying over the odds and the harmonisation of fees with other UK producers addresses the inherent unfairness built into the system.”
However, while Kent said this move is a “step in the right direction,” he noted that there are inconsistencies in the UK’s tax and regulatory structures that “leave the Scotch whisky industry at a competitive disadvantage.”
As such, he said the SWA has invited the exchequer secretary to visit the industry to discuss these discrepancies. “Greater fairness for Scotch whisky can underpin the government’s growth mission, and we look forward to working with HM Treasury towards that shared aim.”
The SDV fee goes towards checks to ensure GI spirits meet the right specifications, protecting producers from having to compete with non-compliant products.
Producers that do not pay the fee will be treated as non-compliant from the date given by HMRC, and details of the verified production facilities will be amended, removed or not included on the SDV look-up facility service.
Furthermore, any products produced after the date given will not be verified, and details will be amended, removed or not included on the list of verified brands on the look-up service.
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