(1) The Finance Act 2003 is amended -

(a) by the insertion of the following section after section 78B:

"78D. Relief for small producers of other fermented beverages

(1) In the case of -

(a) cider and perry exceeding 2.8% vol, and

(b) subject to subsection (2), other fermented beverages, other than cider and perry,

that are subject to alcohol products tax, a relief of half the amount of alcohol products tax paid on such beverages shall, subject to subsection (3) and to such conditions as the Commissioners may prescribe or otherwise impose, be granted on a combined total quantity of such beverages as are referred to in paragraphs (a) and (b) not exceeding 8,000 hectolitres in a calendar year, produced by a producer of other fermented beverages -

(i) where the combined total quantity of beverages referred to in paragraphs (a) and (b) and produced by that producer in the previous year has not exceeded 10,000 hectolitres,

(ii) which is legally and economically independent of any other producer of other fermented beverages,

(iii) the premises of which are situated physically apart from those of any other producer of other fermented beverages, and