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Telegraph christmas Wine quiz
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Hi I am still working on this one. I am having trouble with Question 5. VAT goes up to 20 per cent on January 4. After this, how much tax (duty plus VAT) will you pay on a 14% bottle of table wine costing £5? I searched but could not find this already on the site.
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For more on marking an answer as the "Best Answer", please visit our FAQ.According to the HMRC website, the rate of duty on still table wine ABV 5.5% to 15% is £225 per 100l. Assuming the bottle of wine is 75cl this would give duty of £1.69 (0.75 * 2.25).
The nett price of a £5 bottle of wine at 17.5% would be 5/1.175 = £4.26. VAT at 20% on £4.26 would be £0.85.
So the duty + VAT would be £1.69 + £0.85 = £2.54.
The nett price of a £5 bottle of wine at 17.5% would be 5/1.175 = £4.26. VAT at 20% on £4.26 would be £0.85.
So the duty + VAT would be £1.69 + £0.85 = £2.54.
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