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New Law to Crack Down on Heavily Discounted #Alcohol

A new law banning the sale of alcohol below the cost of duty plus VAT came into effect on 28 May. The ban – a new licensing condition of the Mandatory Code of Practice – applies to all licensed premises, including those with club premises certificates. It intends to prevent businesses from selling alcohol at heavily discounted prices and aims to reduce excessive alcohol consumption and its associated impact on crime levels and health. Responsibility for enforcement of the ban is with local authorities, including licensing authorities, Trading Standards and the Police. More information on the new licensing condition can be found here together with a duty + VAT calculator for businesses to use. There are also commercial calculators as well. If a business for example runs a promotion to sell a pack with 24 440ml cans of 4% ABV lager in one multi-pack they will need to calculate the total volume of lager in order to calculate the permitted price (in this worked example £9.50). 24 x 440ml = 10.560 litres Beer permitted price = (volume (litres) x strength (% ABV) x duty rate) + VAT = (10.560 x 4 x 18.74) x 1.2 = 949.89312, rounded up to £9.50

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