Licence for microbrewery

Related tags New licensing act License Brewing Customs & excise

Q I am building a microbrewery in the yard of my licensed premises, I have been told by the magistrates that I do not need to apply for a licence for...

Q I am building a microbrewery in the yard of my licensed premises, I have been told by the magistrates that I do not need to apply for a licence for the brewery. Please could you clarify thelaw on this? Also, are there new rules in the new Licensing Act?

A I am surprised at the advice you were given. You cannot brew beer for sale in this country without holding the necessary permissions and paying duty on the beer that you sell.

The idea that you can sell your own product in wholesale quantities without needing this permission is quite wrong. You would soon receive a visit from Customs & Excise asking why you had not registered your brewery, and a possible prosecution would ensue.

A "brewer for sale", of whatever size, must first of all register with Customs & Excise before he starts brewing. Details of the requirements and procedures for registration are contained in Customs & Excise notice number 226. You can download this notice from the Customs & Excise website at www.hmce.gov.uk, or your local C&E office can give you a copy of the booklet.

The Brewers & Licensed Retailers Association (BLRA) has prepared a set of guidelines for the use of new brewers, and you can also get help and advice from SIBA, the Society of Independent Brewers.

Registration lasts indefinitely until you stop brewing, but obviously you will be under a constant obligation to record and declare all beer brewed for sale and to pay the relevant duty.

The requirement to register is entirely separate from your justices' licence, which gives you no authority to brew for sale, even in your own pub. If you sell to other pubs, you sell as a brewer and will therefore need to account for such sales in accordance with Customs regulations. The new Licensing Act does not cover this activity at all.

Early date for conversion

Q You said in your newspaper that we had until6 August to apply for the new licences, but I enclose a letter telling me I have to apply by20 March in London. Which is right?

A The letter does not actually require you to apply by the earlier date. It lays out a phasing system, giving proposed periods for certain types of premises. However, I admit that the letter does not directly indicate that an application can be made outside these periods, and this could be construed as misleading.

The plain fact is that you may make an application at any time up until Saturday, 6 August 2005. Because of the possibility of a defective application, it would not be advisable to wait until the last possible moment.

But the council cannot refuse to accept your application if, for some reason, it falls outside the periods they have set. Some councils have made the situation a great deal clearer than yours.

This means that no panic is necessary. If you cannot meet their suggested deadline, then you may make your application at a later time.

Grandfather rights exist

Q Our local newspaper says that from 7 February, the public are allowed to oppose new licences. Does this apply to the premises licence application I have been sent? That is a new licence, isn't it?

A No, it does not apply to your application to convert. You already hold a justices' licence and that gives you "grandfather rights" to convert it into a new premises licence. The only people who can object at this stage are the police, and that is likely to happen only in exceptional circumstances, if at all. Unfortunately, the press release issued by the Department for Culture Media & Sport could be misinterpreted in this respect.

Related topics Licensing law

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