Finance (No. 2) Act 2023

Meaning of “prepared drinks” U.K.

3 (1) Section 27 (meaning of “prepared drink”) is amended as follows.

(2) At the end of subsection (1) insert “;

“(c) a beverage that would result from—

(i) processing a flavour concentrate within subsection (1)(c) of that section in a specified manner in a dispensing machine, and

(ii) in accordance with the relevant dispensing instructions.”

(3) In subsection (2)(b), for “subsection (3)” substitute “subsection (3)(a)”.

(4) After subsection (2) insert—

“(2A) The “relevant dispensing instructions” means—

(a) the instructions for use of the flavour concentrate provided with, or for the purposes of use with, the concentrate or a dispensing machine with which it is designed to be used;

(b) where subsection (3)(b) or (4A) applies, the dispensing instructions determined by the Commissioners.”

(5) For subsection (3) substitute—

“(3) This subsection applies where—

(a) in a case within subsection (1)(b), the packaging of the soft drink states neither the dilution ratio nor information by reference to which the dilution ratio can be calculated;

(b) in a case within subsection (1)(c), no dispensing instructions are provided with, or for the purposes of use with, the flavour concentrate or with any dispensing machine with which it is designed to be used.”

(6) After subsection (4) insert—

“(4A) This subsection applies where—

(a) dispensing instructions are provided, and

(b) it is reasonable to assume that the main purpose, or one of the main purposes, of providing those particular dispensing instructions is avoiding or reducing liability for soft drinks industry levy.”

(7) In subsection (5)—

(a) after paragraph (a) insert—

“(aa) determining dispensing instructions for the purposes of subsection (2A)(b);”;

(b) for paragraph (b) substitute—

“(b) determining whether the main purpose, or one of the main purposes, of—

(i) stating a particular dilution ratio or information, or

(ii) providing particular dispensing instructions;

is avoiding or reducing liability for soft drinks industry levy.”