Distiller's Licence UK: The APPA Process

From 1 February 2025, new producers apply for a single Alcoholic Products Producer Approval (APPA) instead of the old product-specific licences. The Finance (No.2) Act 2023 replaced the patchwork of distiller's, rectifier's and compounder's licences with this one approval; existing licence holders were migrated automatically.

One practical win: the old 18-hectolitre minimum still size rule no longer applies. APPA sets no minimum still size — HMRC instead assesses commercial viability and fitness as part of approval.

You must hold an APPA before you start producing alcoholic products — including distilling spirit, or redistilling bought-in neutral spirit with botanicals for gin. Apply at least 45 working days before you intend to start.

HMRC expects a plan of your premises (A4, black-and-white) with duty-suspended areas shaded and fire exits marked, plus a credible business plan. Approval covers all the spirit categories and premises in a single application.

If you sell alcohol wholesale, you must register for the Alcohol Wholesaler Registration Scheme (AWRS), which typically takes around 6–12 weeks. To sell direct to the public on-site you will also need premises and personal licences from your local authority, and to store spirit under duty suspension you need an approved excise warehouse.

UK spirits are taxed per litre of pure alcohol (LPA). Successive RPI upratings have pushed the headline spirits rate to roughly £32 per LPA — always check the current HMRC figure, as it changes most years. Producers file monthly duty returns, normally due by the 15th with payment cleared by the 25th.

Note that Small Producer Relief applies only to products below 8.5% ABV, so standard-strength spirits do not qualify — a common misunderstanding among new distillers.

End to end, expect 12–18 months. The usual delays are underestimating HMRC processing, starting premises and DSEAR fire-safety work too late, and assuming gin needs the same approvals as whisky. Run your budget and insurance alongside the licence, not after it.

This is editorial guidance, not legal advice — always confirm the current process on gov.uk and with HMRC before you act.