Summary
HMRC and HM Treasury are seeking views on proposed changes to the
Soft Drinks Industry Levy (SDIL).
This consultation closes at
11:59pm on 21 July 2025
Consultation description
Following the recent SDIL review, this
consultation sets out proposals to build on the SDIL's success in
incentivising soft drinks producers to reduce sugar content.
These proposals are:
- to reduce the minimum sugar content at which
the SDIL applies
to qualifying drinks from 5g to 4g. The SDIL standard rate would
apply from 4g to 7.9g total sugar per 100ml, as opposed to 5g
to 7.9g total sugar per 100ml currently
- to remove the exemption for milk-based drinks whilst
introducing a ‘lactose allowance' to account for the natural
sugars in the milk component of these drinks
- to remove the exemption for milk substitute drinks with
‘added sugars' beyond those sugars derived from the principal
ingredient, such as oats or rice
The government welcomes your views on these proposals as part of
this consultation and your feedback will inform decisions by HM
Treasury ministers.
Documents
Strengthening the Soft Drinks
Industry Levy consultation
Ways to respond
Respond online
or
Email to:
SDILconsultation@hmrc.gov.uk
Write to:
SDIL Consultation Team
Indirect Tax, Floor 8(D)
HM Revenue & Customs
31 Water Street
L2 0RD
