How Much Tax Is on a Bottle of Wine in the UK?
If you’ve ever wondered why wine costs what it does in the UK, the answer is simple: tax. In fact, the UK has one of the highest levels of wine taxation in the world. Our infographic above breaks down exactly how much tax you pay on a £15 bottle of wine — and how that tax changes depending on alcohol by volume (ABV).
Whether you’re a casual drinker or a committed wine lover, understanding wine tax helps explain pricing, value, and why lower-alcohol wines are becoming more common on shelves.
The Two Taxes on Wine in the UK
Wine sold in the UK is subject to two separate taxes:
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Excise Duty – a fixed amount charged based on alcohol strength (ABV), not price
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VAT (Value Added Tax) – charged at 20% on the total price, including the duty
This means you’re effectively paying tax on a tax, which quickly adds up.
Tax Breakdown on a £15 Bottle of Wine
Using a typical £15 bottle of still wine at around 12.5% ABV, the tax looks like this:
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Excise Duty: ~£2.67
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VAT on Duty: ~£0.53
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VAT on the Wine: ~£2.47
That brings the total tax bill to £5.67, or 38% of the retail price. In other words, more than a third of what you pay goes directly to the government before the wine producer, importer, distributor, and retailer are paid.
How ABV Affects Wine Tax
Since August 2023, UK alcohol duty has been calculated more precisely based on strength. For wine above 11.5% ABV, excise duty increases for every 0.25% rise in alcohol.
As shown in the infographic:
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11.5% ABV: ~£2.67 duty
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12.5% ABV: ~£2.90 duty
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13.5% ABV: ~£3.13 duty
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14.5% ABV: ~£3.36 duty
This means higher-alcohol wines are taxed more heavily, even if they cost the same at retail. Over a full case of wine, those small differences add up quickly.
Who Actually Gets Paid?
After tax is removed from a £15 bottle:
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£5.67 goes to the government
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£9.33 covers the wine itself, shipping, bottling, storage, staff, and retail costs
The producer’s share is often far smaller than most people expect, particularly for wines sold at everyday prices.
Why This Matters to Wine Drinkers
Understanding wine tax helps explain why:
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UK wine prices feel high compared to other countries
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Lower-ABV wines are increasingly popular
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Small producers face real challenges exporting to the UK
It also highlights just how important value, quality, and provenance are when choosing a bottle — because a significant chunk of the price has nothing to do with what’s in the glass.
If you want to see where your money really goes when you buy wine, the infographic above tells the story at a glance. Cheers to informed drinking 🍷
