(1) Packaged beverages that:

(a) are of an alcoholic strength not exceeding 1.2% ABV;

(b) contain added sugar from a source other than fruit juice, vegetable juice or milk; and

(c) contain at least 5 grams of sugar per 100 millilitres.

(2) Packaged liquids that, when prepared by the addition of water, crushed ice or carbon dioxide, would constitute a beverage satisfying conditions (1)(a)-(c) above.

Milk-based drinks, milk substitute drinks, alcohol substitute drinks and soft drinks used for medical or nutritional purposes are exempt from the levy.

The Soft Drinks Industry Levy (the Levy) is a charge on packaged soft drinks falling within the description given at section 6 above.

The Levy is targeted at soft drinks consumed within the United Kingdom; it is payable (a) on domestically produced drinks by the person who packages the drink; and (b) on imports by the person who first receives or sells the drink within the United Kingdom. Drinks that are exported or are lost or destroyed prior to consumption attract a credit which can be applied against the liability for the Levy.

The Levy is charged at a rate of £0.18 (~€0.22) per litre of prepared drink for drinks with a sugar content of 5 grams and above per 100 millilitres and £0.24 (~€0.29) per litre of prepared drink for drinks with a sugar content of 8 grams and above per 100 millilitres.