Budget 2011: Angostura bitters set to become more expensive as special tax relief lost

by Neil Gerrard, Wednesday 23rd March 2011 14:50

Black beer and Angostura bitters are both set to lose their special tax relief as part of this year's Budget.

Angostura bitters is made in Trinidad and Tobago, and is popular for flavouring a variety of cocktails and alcoholic drinks. It has not traditionally been classified as an alcoholic drink in the UK, despite its 44.7% alcohol content.

Many incorrectly believe the drink is poisonous in large quantities because of its associations with Angostura bark. It is actually made by the House of Angostura.

The drink has now lost its special tax relief following a review by the Office of Tax Simplification.

Meanwhile, black beer, a malt liquor that was once valued as a health drink because of its high vitamin C content, has also lost the relief.

The abolition of the reliefs is set to happen after 2012 in a future Finance Bill, following a period of consultation.

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By Neil Gerrard

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