Alcohol duty rates change from 1 February 2026 until 1 February 2027

Alcohol duty rates charged per litre of pure alcohol in a product change for the period from 1 February 2026 until 1 February 2027, according to rates and allowances published by HM Revenue & Customs on 5 December 2025¹. The same publication sets out the wider tax rates and thresholds for the 2026 to 2027 tax year¹.

The document lists the alcohol duty heading as "Duty rate from 1 February 2026 until 1 February 2027 (per litre of alcohol in the product)"¹. The individual rates for each duty category are not reproduced in the text of the publication reviewed here, so the specific pence-per-litre figures for beer, cider, wine and spirits have not been reported in the material available¹.

The publication covers a range of other tax changes taking effect in the same period. Income Tax bands and main rates are unchanged for 2026 to 2027: the basic rate remains 20% on £1 to £37,700, the higher rate 40% on £37,701 to £125,140, and the additional rate 45% above £125,140¹. The Personal Allowance stays at £12,570, with the income limit at £100,000¹.

Dividend tax rates rise for 2026 to 2027. The dividend ordinary rate increases from 8.75% to 10.75% and the dividend upper rate from 33.75% to 35.75%, while the additional rate stays at 39.35%¹. The Dividend Allowance remains £500¹. The Personal Savings Allowance stays at £1,000 for basic rate taxpayers and £500 for higher rate taxpayers, and the starting rate for savings remains 0% with a £5,000 limit¹.

Other measures dated in the publication include:

On tobacco duty, the publication gives a rate from 26 November 2025 of an amount equal to 16.5% of the retail price plus £353.50 per 1,000 cigarettes, with a further figure of £471.93 per 1,000 cigarettes¹. It also states that the government will extend the scope of the higher rate to all business jets over 5.7 tonnes¹.

Why it matters for households

Alcohol duty is charged on producers and importers, and is reflected in the price paid at the till, so the rates that apply from 1 February 2026 feed into what shoppers pay for beer, cider, wine and spirits until 1 February 2027¹. The publication does not set out the individual rate for each category in the text reviewed, so the size of any change to shelf prices has not been reported here¹.

Households with dividend income are affected from the start of the 2026 to 2027 tax year, when the ordinary and upper dividend rates rise to 10.75% and 35.75% respectively¹. The Dividend Allowance stays at £500, so the higher rates apply to dividend income above that amount¹. Savings income treatment is unchanged, with the Personal Savings Allowance at £1,000 for basic rate taxpayers and £500 for higher rate taxpayers¹.

Foster carers and shared lives carers using Qualifying Care Relief see the annual fixed amount rise to £20,440 and the weekly amounts to £435 for children under 11 and £515 for children aged 11 or older and for adults, from 6 April 2026¹. Blind Person's Allowance rises to £3,250, and the maximum Married Couple's Allowance for those born before 6 April 1935 rises to £11,700¹.

What happens next

The alcohol duty rates run to 1 February 2027¹. The 2026 to 2027 Income Tax, National Insurance and allowance figures take effect from 6 April 2026¹. The ATED charge increase, the Aggregates Levy devolution and the VED changes take effect from 1 April 2026¹. The film, high-end TV, animation and children's TV reliefs sunset from 1 April 2027¹. Further detail on how these rates apply is set out in the government's tax guidance.