Uk Alcohol Distilling Laws: What You Need To Know

Home distilling is illegal in the UK without a licence. However, there is a grey area regarding ethanol intended for personal consumption, as HMRC has no legitimate interest in ethanol that is not being traded. Several types of licences are available depending on the scale and purpose of distillation projects, including Rectifier's Licences and Compounder's Licences. Those caught distilling alcohol without appropriate licensing can face substantial fines, confiscation of equipment, criminal charges, and even imprisonment.

Illicit alcohol is unsafe for consumers and can cause methanol poisoning

In the UK, distilling your own alcohol is not illegal, but it does require a licence. To obtain a distiller's licence, you must submit a comprehensive business plan and detailed information about your plant and process to HMRC for approval. Each distillery is given a unique 5-digit identifying number, which must be used on quarterly returns, where you declare the materials used and spirits produced.

Illicit alcohol, on the other hand, is a critical global public health issue. It is produced without regulatory oversight, increasing the risk of safety, quality, and adulteration issues. Illicit alcohol is often produced with toxic chemicals such as antifreeze, nail polish remover, and paint stripper, which can cause blindness, organ failure, and even death.

One of the most significant dangers of consuming illicit alcohol is methanol poisoning. Methanol is a toxic alcohol found in various household and industrial products, including windshield wiper fluid, carburetor cleaner, and some types of antifreeze. When ingested, methanol is rapidly absorbed by the body and can cause significant metabolic and systemic toxicity, leading to morbidity and mortality if left untreated. Formic acid, a metabolite of methanol, directly damages multiple organ systems, particularly the central nervous system and the retina.

The dangers of methanol poisoning have been well-documented in academic literature and media searches. Incidents of methanol poisoning have been reported worldwide, with a notable impact in regions where illicit alcohol consumption is high, such as Southeast Asia, Eastern Mediterranean countries, and certain European countries. The production and consumption of illicit alcohol, therefore, pose a significant public health risk that requires further research and policy development to address this issue effectively.

To ensure consumer safety, it is crucial to purchase alcohol only from reputable and licensed retailers, bars, and supermarkets. Consumers should be vigilant and check for signs of fake alcohol, such as poor packaging, missing manufacturer information, broken seals, and unusual smells. By following these precautions, individuals can reduce the risk of consuming unsafe and potentially toxic illicit alcohol.

It is illegal to distill alcohol in the UK without a licence

Distilling alcohol in the UK is a regulated activity. The production of spirits is overseen by HM Revenue and Customs (HMRC), which requires distillers to obtain a licence for their operations. The specific type of licence depends on the scale and purpose of distillation. For instance, a Rectifier's Licence is necessary for refining already distilled spirits, while a Compounder's Licence is required for mixing alcoholic beverages without distillation.

The process of obtaining a licence involves submitting comprehensive business plans and detailed information about the proposed plant and process. Applicants may also need to provide a business plan to assure authorities of the commercial nature of their operations. This plan should include information such as costings, suppliers, customer base, market research, and profit forecasts.

It is important to note that distilling alcohol without the appropriate licence can result in severe penalties, including substantial fines, confiscation of equipment, criminal charges, and even imprisonment. These consequences highlight the importance of understanding the regulations and working with a distilling partner to ensure compliance and safety.

While some individuals may question the legality of distilling for personal consumption, it is important to recognise that the production of spirits carries inherent risks. Illegally produced alcohol can be unsafe, leading to health issues such as blindness and other side effects associated with the consumption of methanol. Additionally, unregulated trading can increase related crimes and negatively impact legitimate businesses that operate within the legal framework.

In summary, distilling alcohol in the UK without a licence is illegal, and those considering engaging in distillation activities should ensure they obtain the necessary permits and follow the relevant guidelines to avoid legal and health consequences.

A distiller's licence is required for all spirits producers

In the UK, a distiller's licence is required for all spirits producers. This is sometimes referred to as a distilling permit. To obtain a licence, you must complete and submit form DLA1 to the National Registration Unit of HM Revenue and Customs (HMRC). You must make the application in the name of the person manufacturing the spirits.

If you intend to produce spirits at more than one location, you must obtain a separate licence for each premises. You will also need to apply for approval of the plant and processes you intend to use in the manufacturing process. This includes providing the number and description of the vessels used in the manufacturing process and an explanation of their use.

In addition to the distiller's licence, approval of plant and process, you will also need warehousekeeper authorisation and warehouse approval.

To obtain a distiller's licence, you must submit a business plan demonstrating that the production is commercial in nature. This is particularly important if you are a new distiller without previous or existing licences. There is no checklist for what to include in the business plan, but it should demonstrate that your business is likely to be viable. This can include information on costings, suppliers, customer base, market research and profit forecasts.

Financial institutions may ask for an indication that a distiller's licence will be granted by HMRC before providing the necessary finance to purchase premises. HMRC can issue a letter confirming that they are likely to approve your application based on the information provided. However, they will not issue this letter if they are not satisfied that you have demonstrated a genuine business purpose or if there are concerns about other aspects of your plan, such as the security of the alcohol once produced.

There are different types of licences, including a Rectifier's Licence and a Compounder's Licence

In the UK, it is illegal to distill your own alcohol without a licence. There are different types of licences available, depending on the type of alcohol production activity you intend to carry out.

If you want to produce spirits from scratch, you will need a distiller's licence. This involves gaining approval from HMRC by describing your distillery premises, plant, and processes, including the "distillery warehouse", where your spirits will be collected. You will also need to register to receive and use duty stamps, as almost all retail containers require them. Additionally, you must keep accurate records of the quantity and gravity of wort and wash collected, using industry-recognised equipment and methods.

If you wish to produce small quantities with minimal fuss, you can opt for a simpler process. In this case, you can purchase a small still and use duty-paid neutral spirits to make gin and other rectified spirits. This requires a combined rectifiers/compounders licence. To obtain this licence, you need to make an "entry", listing the rooms and equipment you will use, and send it to HMRC via registered delivery with a signature.

For commercial growers or those producing wine or made-wine for sale, a licence is also required. Cider producers must register as a maker of cider or perry for sale. It is important to note that different Excise Duty rates apply to varying sub-categories of goods.

You must complete a form W21 Alcohol duties: Quarterly Distillery Return

In the UK, it is illegal to distill denatured alcohol without a licence. However, it is possible to obtain a distiller's licence from HMRC. If you are a licensed distiller, you must complete a form W21 Alcohol duties: Quarterly Distillery Return. This form is used to declare the materials used and spirits produced during the quarter. It must be submitted within 14 days of the end of each quarter, even if it is a ''nil' return. Each distillery is given a unique 5-digit identifying number, which must be used on the quarterly return. If you manufacture more than one class of spirit, this will be considered as more than one distillery, and each class of spirit will have a unique number.

The form W21 has 8 categories and must be completed for each class of spirit produced. It is important to note that you must not mix spirits produced in different periods until you have taken separate accounts. The form itself details how to complete it. It is essential to provide complete and accurate information in the W21 return to avoid penalties. If you make a mistake, notify HMRC as soon as possible to potentially reduce the penalty. Deliberately providing false information can result in prosecution and a heavy penalty.

To obtain a distiller's licence, a comprehensive business plan and detailed information about the proposed plant and process are required. This includes information on costings, suppliers, customer base, market research, and profit forecasts. The business plan should demonstrate that the production is commercial in nature and provide evidence of a viable business.

As of March 2025, the W21 form can no longer be used for quarterly spirits production returns. Instead, licensed distillers must use the 'Manage your Alcohol Duty online service' to report spirits production every quarter.

Frequently asked questions