The Soft Drinks Industry Levy (SDIL) was introduced in
April 2018 and applies to the packaging and importation of
soft drinks containing added sugar. It was introduced as
part of the government’s initiative to tackle childhood
obesity by encouraging manufacturers to reduce the sugar
content in their drinks products.
The UK has one of the highest obesity rates among developed
countries and soft drinks are still the biggest source of
sugar in children’s diets. Revenue collected from the levy
will help fund physical education activities in primary
schools, the Healthy Pupils Capital Fund and provide a
funding boost for breakfast clubs in over 1,700 schools.
Manufacturers had two years to prepare ahead of the
introduction of SDIL. While many
manufacturers reduced the sugar content in their drinks
products, over 450 traders have registered to pay the levy.
There are two rates of tax, depending on the sugar content:
- the ‘standard rate’ (18p per litre) applies to drinks
with sugar content between 5 grams and up to (but not
including) 8 grams per 100ml
- the ‘higher rate’ (24p per litre) applies to drinks
with sugar content equal to or greater than 8 grams per
100ml
The Exchequer Secretary to the Treasury, , said:
Today’s figures show the positive impact the soft drinks
levy is having by raising millions of pounds for sports
facilities and healthier eating in schools, as well as
encouraging manufacturers to cut sugar in over half the
drinks found in UK stores.
Helping our next generation to have a healthy and active
childhood is a priority for us, and I’m pleased to see
the industry is playing its part.
Further findings from HMRC’s statistics show:
- since April, over 90% of net liabilities declared by
traders were at the higher rate (24p per litre)
- since SDIL was
introduced, 85% of gross liabilities were declared as
packaged (produced in the UK)
Read the Soft Drinks Industry
Levy statistics.
The statistics are broken down by rate of tax (standard and
higher), and the origin of goods (imported and packaged).
Imported refers to liabilities declared as imported from
large overseas producers, and packaged refers to
liabilities declared as packaged by traders for themselves
and on behalf of large producers.
The 2016 Budget announced funding for a number of
programmes linked to the revenue from the Soft Drinks
Industry Levy. The funding has been allocated to a number
of programmes to support pupil health and well-being which
include:
- doubling funding for the primary physical education and
Sport Premium to £320 million a year from 2017 - the
Department for Education and the Department of Health and
Social Care contribute £100 million and £60 million per
year to the premium respectively, with the Soft Drinks Levy
funding contributing £415 million over the remainder of the
current spending review period
- providing £100 million in 2018/19 for the Healthy
Pupils Capital Fund
