Alcohol duty went up again in February 2026. The government raised beer duty by 3.6% and wine duty by a whopping 22%. Here's exactly how much of your weekly pub spend is going straight to HMRC.
| Drink | Duty per unit | Duty per serve | +VAT | Total tax |
|---|---|---|---|---|
| Pint of beer (4.2%) | 21.5p/unit | 51p | +20% VAT | - |
| Glass of wine (13%) | 67.6p/unit | £1.55 | +20% VAT | - |
| Single spirit (40%) | 31.6p/unit | 32p | +20% VAT | - |
| Can of beer (330ml, 5%) | 21.5p/unit | 35p | +20% VAT | - |
| AF beer (0.0%) | 0p | 0p | +20% VAT | VAT only |
I've been getting into AF beers lately and the whole zero-duty thing was news to me. IMPOSSIBREW does a Triple Hopped IPA that's genuinely good - like proper good, not "good for AF" good. If you fancy trying it, here's a referral link that saves you a tenner.
Beer duty increased by 3.6% from 1 February 2026, in line with RPI inflation. Wine duty rose by approximately 22% as transitional relief ended. Spirit duty increased by 3.6%. The Treasury raised an estimated £13.1 billion from alcohol duty in 2024/25.
For a typical 4.2% ABV pint at £6.50 in a pub, approximately £1.59 goes to the government - about 51p in alcohol duty plus £1.08 in VAT. That's roughly 24% of what you pay going straight to HMRC.
No. Beer under 0.5% ABV is classified as "small beer" and pays zero alcohol duty. You still pay standard 20% VAT (same as any soft drink or food), but there's no excise duty at all. This makes AF beer significantly cheaper to produce - and that saving should be passed on to you.
In pure duty savings, swapping one pint of 4.2% beer per week for an AF alternative saves about £26.50 per year in alcohol duty alone. Swap 4 pints a week and that's over £106. Plus you save on everything else - no hangover taxis, no recovery takeaways, no lost productivity.