Soft Drinks Industry Levy credit for lost or destroyed drinks (notice 4)

Who can claim a levy credit

You can claim a levy credit on your Soft Drinks Industry Levy returns for drinks that you have paid the levy on and have been lost or destroyed.

You can only claim the credit if you have registered for the levy and have paid the levy on those drinks directly to HMRC.

Find out if you can claim a credit for exported drinks.

How to claim a levy credit

You’ll need to get and keep the required evidence of the lost or destroyed drinks, as described in this guidance.

You should claim a levy credit on your quarterly Soft Drinks Industry Levy returns in Soft Drinks Industry Levy returns and records (notice 2).

You have 2 years from the date that the drinks became chargeable to the levy to claim a levy credit.

If you are claiming a credit in a return ending after 1 April 2025

Do not use the return to claim credit for levy paid or accounted for at a previous year’s rates.

To claim this credit, follow the guidance in the section ‘Claiming credits following 1 April 2025 and 1 April 2026 rate changes’ in Soft Drinks Industry Levy returns and records (notice 2).

Credit for lost or destroyed drinks

You can claim a levy credit for drinks that are:

• lost
• destroyed
• disposed of as waste
• reprocessed
• spilled and cannot be used

Evidence you need

The text in this section has force of law under regulation 13 of the Soft Drinks Industry Levy Regulations 2018.

To claim a levy credit for lost or destroyed drinks, you must get and keep evidence that shows that the drinks have been lost or destroyed, and the:

• quantity in litres, including how much of it met or did not meet the higher levy band
• levy band of all drinks you have paid the levy on
• place and date the drinks were lost or destroyed
• cause of the drinks becoming lost or destroyed
• company, organisation or individual that had possession of the goods immediately before they were lost or destroyed
• refunds given to customers because of drinks lost or destroyed (if this applies)

You do not need to have a single document showing all of this information, but all of your evidence together must show the required information. It must also allow HMRC to see that this information relates to the drinks you have paid the levy on and are claiming the credit for.