Alcohol used in the production of retail sanitiser gel is not subject to excise duty, providing it is denatured. Producers, suppliers, and users of denatured alcohol must be authorised by HM Revenue & Customs (HMRC).
Licensed suppliers of trade-specific denatured alcohol or duty-free spirit that are supplying it for hand sanitiser do not need to restrict the volume supplied. However, they should continue to inspect authorisations and record details of supplies made.
On 23 March 2020, HMRC announced a series of easements designed to increase the amount of denatured alcohol available, as well as the number of businesses authorised to use it in the production of sanitiser gel. These measures will make it easier for manufacturers to meet the sudden increase in demand during the Coronavirus outbreak. Further information on the easements announced to support hand sanitiser production can be found at gov.uk.