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Duty point

Defined in law

The moment at which excise duty becomes payable — in UK terms, when goods are released for consumption, chiefly on removal from duty suspension. Until then goods sit 'in bond' with duty suspended.

Where it is defined

Excise Goods (Holding, Movement and Duty Point) Regulations 2010 (SI 2010/593), regs. 5–6; duty imposed under the Finance (No. 2) Act 2023 alcohol duty regime

Worth knowing

The crux of cask ownership economics: whisky bought and held in bond incurs no duty or VAT, and a cask sold in bond to another warehouse account never passes a duty point. Duty is calculated on litres of pure alcohol at the duty point, so evaporation losses in warehouse are never taxed.

Related terms

Last reviewed 2026-07-30 · All glossary terms