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 produce alcoholic products in the UK. That covers distilling from raw ingredients, redistilling or compounding spirit you hold in duty suspension (the usual route for gin made from bought-in neutral spirit), and any process that changes a product's strength or category. You do not need one if you only compound or rectify spirit on which duty has already been paid, or only bottle a finished product without altering it.

HMRC recommends applying at least 45 working days before you intend to start; that is a lead time, not a promised turnaround. With the application you send a plan of the premises (A4 or smaller) showing equipment, the areas where spirit will be held in duty suspension, and fire exits marked in red. HMRC checks that the business is viable and that you are a fit and proper person, and may visit.

One application can cover several spirit categories, activities and premises, but the approval only covers what HMRC actually approves: you can only produce the categories it lists, on the premises it lists. To add a new spirit or site later, you update the approval.

No. The APPA exemption for making alcohol for your own domestic use covers beer, cider and wine but excludes spirits. Distilling spirit without approval, or on premises HMRC has not approved, is an offence: HMRC can charge a penalty and confiscate the spirit and the equipment. There is no small “hobby” licence; if you want to distil, you apply for an APPA like any other producer.

Alcohol Wholesaler Registration Scheme (AWRS): if you sell to other businesses for resale (shops, bars, distributors) at or after the point duty is due, you need AWRS approval. HMRC lists spirit producers explicitly. Apply at least 45 days before you start wholesaling and wait for approval: trading without it carries penalties.

Selling to the public: a shop, bar or tasting room needs an alcohol licence for the premises. In England and Wales that is a premises licence from the council plus a designated premises supervisor with a personal licence; Scotland uses local licensing boards; Northern Ireland licenses through the courts.

Food business registration: distilleries are food businesses, so register the premises with your local authority at least 28 days before you start trading.

Duty suspension: your APPA can approve holding spirit in duty suspension on your own approved premises. A separate excise warehouse approval is only needed if you store or trade spirit that way beyond what the APPA covers.

UK spirits are taxed per litre of pure alcohol (LPA). From 1 February 2026 the rate for products stronger than 22% ABV is £33.99 per LPA (HMRC). A 70cl bottle of 40% gin holds 0.28 LPA, so it carries about £9.52 of duty before VAT. Rates normally change each February, so check HMRC's table when you cost a product.

Duty becomes payable when spirit leaves duty suspension (or is consumed on site), not when you sell it. Producers file a monthly Alcohol Duty return (a nil return if nothing was released), due by the 15th of the following month with payment cleared by the 25th, and report spirit production to HMRC quarterly.

Duty stamps have gone. The UK Alcohol Duty Stamps Scheme ended on 1 May 2025, so new bottles do not need them.

Small Producer Relief applies only to products below 8.5% ABV, so standard-strength spirits do not qualify, however small the distillery.

From idea to first legal sale, a premises-based gin project commonly takes 12–18 months, though it depends on the building, planning and how much work the premises need. Start the premises plan and your DSEAR fire and explosion risk assessment early: HMRC needs the plan with your application. 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.