V23.202 Work out the sugar content of your diluted soft drink (notice 3)
3 April 2018
How to work out the dilution ratio of your drink, and what records you need to keep about the dilution ratio for the Soft Drinks Industry Levy.
Your liable drink is a diluted drink if the concentrated liquid must be mixed with water, crushed ice, carbon dioxide, or a combination of these to become a prepared drink.
The packaging can display information that allows the sugar content of the prepared drink (per 100 millilitres) to be calculated. This will determine the dilution ratio, if your drink is liable for the Soft Drinks Industry Levy, and how much you'll have to pay.
The dilution ratio is the amount of concentrated liquid compared to the amount of one or more of the following:
• crushed ice
• carbon dioxide
For your concentrated drink to be prepared as drinkable, it must be diluted according to the dilution ratio (or the nutritional information that allows the ratio to be calculated) on the packaging.
You must keep any evidence to show how you've worked out your drink's dilution ratio. You may need to provide it to HMRC.
Records you must keep to support a dilution ratio
You must get and keep records to support the dilution ratio of your liable drinks. These records must include details about any changes in the dilution ratio, including:
• when the change was made
• what the change was
• why the