Duty Stamp Capital Grants explained
Government to give business financial support for the launch of the UK Duty Stamps Scheme
Grants to help businesses with the cost of adapting to the Government's new duty stamps scheme are now available, Treasury Minister John Healey announced today.
Three million pounds in grant aid has been earmarked to assist UK small and medium sized enterprises (SMEs) with one-off capital costs associated with preparing their businesses to fix duty stamps to bottles of spirits.
The Duty Stamps Scheme, which is being phased-in over the coming months, aims to tackle alcohol duty fraud.
Financial Secretary to the Treasury, John Healey, said:
"We have listened to business throughout the development of the duty stamps scheme, and have already significantly reduced the estimated cost to business of complying with the new regulations.
"Tackling duty fraud will make a big difference for honest players in the drinks market, and the £3m now available will go a long way towards helping small businesses make any changes that may be necessary."
The scheme will require the industry to apply duty stamps to bottles of spirits with an alcohol by volume strength of 30% or more, contained in bottles of 35cl or above, which are for sale on the UK market. The first critical date in the scheme's implementation is 1 October 2006, when spirits passing an excise duty point for release onto the UK market must bear a duty stamp. Subsequently, qualifying bottles of spirits sold through retail premises must bear a duty stamp from 1 January 2007.
HM Revenue & Customs (HMRC) is now accepting applications from SMEs for one-off capital grants, which are worth up to approximately £60,000 (Euro 100,000 equivalent) per company. To qualify, businesses must affix duty stamps to bottles of spirits and have incurred fixed capital costs e.g. new labelling machinery for bottling lines, to enable them to do so. All grant applications will be considered and payments made following the closing date of 1 October 2006.
For further information, or to obtain a copy of the application form, please visit the Duty Stamps website at www.ukdutystamps.info, or phone HMRC's National Advice Service on 0845 010 9000.
To apply for a grant a business must be a small or medium enterprise as defined in EU recommendation 2003/361/EC. This means a business must have:
Appropriate helpline
Tel: 0845 010 9000
Grants to help businesses with the cost of adapting to the Government's new duty stamps scheme are now available, Treasury Minister John Healey announced today.
Three million pounds in grant aid has been earmarked to assist UK small and medium sized enterprises (SMEs) with one-off capital costs associated with preparing their businesses to fix duty stamps to bottles of spirits.
The Duty Stamps Scheme, which is being phased-in over the coming months, aims to tackle alcohol duty fraud.
Financial Secretary to the Treasury, John Healey, said:
"We have listened to business throughout the development of the duty stamps scheme, and have already significantly reduced the estimated cost to business of complying with the new regulations.
"Tackling duty fraud will make a big difference for honest players in the drinks market, and the £3m now available will go a long way towards helping small businesses make any changes that may be necessary."
The scheme will require the industry to apply duty stamps to bottles of spirits with an alcohol by volume strength of 30% or more, contained in bottles of 35cl or above, which are for sale on the UK market. The first critical date in the scheme's implementation is 1 October 2006, when spirits passing an excise duty point for release onto the UK market must bear a duty stamp. Subsequently, qualifying bottles of spirits sold through retail premises must bear a duty stamp from 1 January 2007.
HM Revenue & Customs (HMRC) is now accepting applications from SMEs for one-off capital grants, which are worth up to approximately £60,000 (Euro 100,000 equivalent) per company. To qualify, businesses must affix duty stamps to bottles of spirits and have incurred fixed capital costs e.g. new labelling machinery for bottling lines, to enable them to do so. All grant applications will be considered and payments made following the closing date of 1 October 2006.
For further information, or to obtain a copy of the application form, please visit the Duty Stamps website at www.ukdutystamps.info, or phone HMRC's National Advice Service on 0845 010 9000.
Notes for editors
To qualify for a capital grant under this scheme a business must:- physically affix duty stamps to retail containers of spirits in the UK from 1 October 2006;
- have incurred fixed capital expenditure to enable the business claiming the grant to undertake this activity from 1 October 2006;
- have incurred the eligible expenditure on-shore in the UK, and the assets purchased will be used to affix duty stamps in the UK; and
- be incurring the expenditure for which the grant is being claimed and be the one making the application.
To apply for a grant a business must be a small or medium enterprise as defined in EU recommendation 2003/361/EC. This means a business must have:
- fewer than 250 employees;
- an annual turnover of no more than €50 million; and
- a balance sheet below €43 million.
Appropriate helpline
Tel: 0845 010 9000