"Every pint in every pub across the UK" will be subject to less tax from August 1, HMRC has said.
Next month will see the biggest Alcohol Duty reforms in 140 years come into effect. The new rates will see all alcoholic drinks taxed by their alcohol by volume (ABV) rather than coming under four categories (beer, cider, spirits and wine).
HMRC said it will make the system fairer and responsive to new products entering the market as "consumer tastes evolve".
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It added that small producers, including pubs and restaurants, will benefit from reduced rates on qualifying products, such as draught beer and cider.
Exchequer Secretary to the Treasury Gareth Davies said: “Because we left the EU we can make sure our alcohol duty system works for us. From next month the whole system will be simpler, the duty will reflect the strength of the drink.
“We will also protect pubs and brewers with our Brexit Pubs Guarantee keeping Draught Duty down, and a new Small Producer Relief."
The new system will create six standardised alcohol duty bands across all types of alcoholic products and apply to all individuals and businesses involved in the manufacture, distribution, holding and sale of alcoholic products across the UK.
These reforms will replace and extend the existing Small Brewers Relief with Small Producer Relief. This means that all small businesses that produce any alcoholic products with an ABV of less than 8.5% will be eligible for reduced rates on qualifying products, if they produce less than 4,500 hectolitres per year.
There will also be a reduced rate for draught products, which will reduce tax on qualifying beer and cider by 9.2%, and by 23% on qualifying wine-based, spirits-based and other fermented products, sold in on-trade premises such as pubs and restaurants.
To support wine producers and importers in moving to the new method of calculating duty on their products, temporary arrangements will be in place for 18 months until February 1 2025, HMRC said.
Similarly, low strength drinks below 3.5% ABV will be charged at a new lower rate of tax.
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