New sting in nettle ale tale could quench tax demand
THE ROW over a stinging nettle beer that could put its Helston brewer out of business has taken another twist after new evidence was put before the taxman.
In January brewer Miles Lavers was hit with an order to cease trading and a £10,000 bill from Her Majesty's Revenue and Customs (HMRC).
Tax officers imposed the "stop" order saying the traditional 4.5 per cent nettle brew was not a beer under EU law and should incur more tax.
Since then Mr Lavers has had MPs and Euro MPs rally to his cause, had a question put to the European Commission, and appeared on TV while awaiting an appeal over whether his beer really is beer.
HMRC originally said that a drink needed to contain malt to be a beer, and be taxed as one. Cornish Stingers does not.
Now Mr Lavers has put new evidence before the HMRC showing EU and UK definitions of beer are different – and arguing taxation should be based on the letter of the UK law.
Under the heading "What is Beer?" HMRC's own website gives the UK definition of beer from the Alcoholic Liquor Duties Act 1979 as "ale, porter, stout and any other description of beer, and any liquor which is made or sold as a description of beer or as a substitute for beer, whose alcoholic strength exceeds 0.5 per cent".
Mr Lavers' submission to HMRC states: "The product clearly falls within the UK definition of beer. Accordingly, the product is beer under domestic legislation and should be treated as such for duty purposes."
Mr Lavers said HMRC has now told him it needed another month to consider his appeal.
A spokesman for HMRC said he could not comment on Mr Lavers' case because of "taxpayer confidentiality".
He added: "A drinks producer can request HMRC to review any decision made on the level of duty and VAT to be paid on their alcoholic product.
"The review officer is independent from the original decision and to make a fully informed decision needs to be aware of all the relevant facts."
Mr Lavers has vowed to continue making Cornish Stingers and agreed with the Woodenhand Brewery of Grampound Road to brew a nettle real ale called Foragers Ale. He hopes to avoid the £10,000 back duty whatever the eventual HMRC ruling on Stingers is.
He said: "We really hope to be exempt from the retrospective tax bill. Will Cornish Stingers be able to be taxed as a beer in the future? Policy change, exemption, and provisions often take time, but we remain upbeat."








Comments