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Alcohol Licensing Basics

BusinessReviewed by Civil Help editorial team: 7 February 2026Next review: 8 June 20276 min
Verified against 4 sources
  • Licensing Act 2003
  • Licensing Act 2003 (Cumulative Impact Assessment) Regulations 2023
  • DCMS Alcohol Licensing Guidance (Section 182 Guidance, 2023)
  • Home Office guidance on the late-night levy

Selling alcohol without a licence is a criminal offence. Any business wishing to sell or supply alcohol in England and Wales must hold a premises licence and have a Designated Premises Supervisor (DPS) with a personal licence. Licensing is regulated by your local authority licensing authority under the Licensing Act 2003.

Key points

  • A premises licence authorises specific licensable activities (sale of alcohol, regulated entertainment, late-night refreshment) at a specific premises.
  • Every premises licensed to sell alcohol must have a Designated Premises Supervisor who holds a personal licence.
  • Applications are made to the local authority licensing authority; representations can be made by responsible authorities and local residents.
  • Licence conditions relate to the four licensing objectives: prevention of crime and disorder, public safety, prevention of public nuisance, and protection of children from harm.

Types of Licence and Who Needs What

The premises licence is the main authorisation for a permanent venue wishing to carry out licensable activities on a regular basis. It is attached to the premises, not the operator — if the business changes hands, the licence can be transferred. For one-off or occasional events, a Temporary Event Notice (TEN) can be used instead — a TEN allows licensable activities at a premises for up to 168 hours (7 days), and each premises can hold up to 15 TENs per year.

Any individual who acts as the Designated Premises Supervisor (DPS) must hold a personal licence. A personal licence is granted by the local authority based on proof of age (18+), a Licensing Act qualification (usually the Award for Personal Licence Holders — APLH), and a DBS check. The DPS does not need to be present at all times, but they are responsible for authorising the sale of alcohol at the premises. Any member of staff authorised to sell alcohol must be either a personal licence holder or authorised by the DPS.

Applying for a Premises Licence

A premises licence application is submitted to the local authority licensing authority. The application must include: a plan of the premises; an operating schedule setting out the proposed licensable activities, opening hours, and steps to promote the four licensing objectives; and (if alcohol is included) the name of the proposed DPS. A fee is payable based on the rateable value of the premises.

The application must be advertised by displaying a notice at the premises and publishing a notice in a local newspaper for 28 days. Responsible authorities (the police, fire authority, environmental health, and others) and local residents can make representations against the application during this consultation period. If no representations are received, the licence must be granted as applied for. If representations are received, a hearing before the licensing committee is held — the committee can grant, modify, or refuse the application. Grant is the norm where the applicant has engaged proactively with responsible authorities and addressed their concerns before the hearing.

Licence Conditions and Review

Every premises licence comes with mandatory conditions set by the Licensing Act (for example, the requirement to display the DRINKaware logo and Challenge 25 signage) and conditions specific to the premises agreed at the time of grant. Common conditions include: CCTV requirements; SIA-licensed door staff after certain hours; restrictions on the type of entertainment or glassware; Challenge 25 age verification policies; and noise management measures.

Responsible authorities and local residents can apply to the licensing authority to review a premises licence if they have concerns about how the licensing objectives are being promoted. A review can result in the imposition of additional conditions, a suspension, or revocation. Even a single serious incident — a violent incident, drug dealing, or evidence of underage sales — can trigger a review and serious consequences. Licence holders should maintain an incident log, train staff regularly on age verification, and keep their Challenge 25 policy current and documented.

Cumulative Impact Policies, Late-Night Levy, and Compliance Best Practice

Local authorities can designate a Cumulative Impact Zone (CIZ) — formerly called a Special Policy Area — where the high concentration of licensed premises is causing problems of crime and disorder, public nuisance, or public safety. In a CIZ, the licensing authority applies a rebuttable presumption against granting new licences or significant variations to existing ones. If you want to open a new venue or significantly expand an existing one in a CIZ, you face a substantially higher evidential burden. Check with the licensing authority whether your target premises is in a CIZ before investing in site development.

The late-night levy is a discretionary power for local authorities to charge a financial contribution from premises licensed to sell alcohol after midnight. The levy applies in specific geographical areas designated by the authority. Proceeds are shared between the council and the local police. If a late-night levy is in force in your area, budget for it as part of ongoing operating costs — failure to pay when required can result in licensing consequences as well as debt enforcement.

From a day-to-day compliance perspective, licence holders should maintain: an up-to-date incident log recording all incidents at or near the premises (date, time, nature, action taken); DPS training records and Challenge 25 policy documents; CCTV maintenance logs (if CCTV is a licence condition, proving it was working is essential in any licensing review); and records of door supervisor checks (name, SIA badge number) on nights when SIA staff are required by condition. Responsible authorities — particularly the police — may request these records at any time. Having them ready demonstrates compliance proactively and significantly reduces the risk of a licence review or prosecution.

Frequently asked questions

Can I sell alcohol online or for delivery?
Yes — but you need a premises licence for the premises from which the alcohol is dispatched (your warehouse or storage facility). Remote sales (by internet, phone, or mail order) are licensable activities. The DPS for the dispatch premises must authorise all sales. Age verification is mandatory — you must not deliver alcohol to anyone under 18 or hand it to someone who appears to be buying on behalf of a minor. Many operators use a Challenge 25 policy for delivery drivers.
What is the penalty for selling alcohol without a licence?
Selling alcohol without a premises licence is an unlimited fine and/or up to six months' imprisonment under the Licensing Act 2003. Selling to under-18s is also a criminal offence — a fixed penalty notice of £90 or prosecution leading to a fine of up to £5,000, and potentially loss of the premises licence. Local authorities and police conduct test purchase operations — take-aways, off-licences, and supermarkets are regularly targeted.
Do we need a licence for a work Christmas party with free alcohol?
No — supplying alcohol free of charge (with no payment required) is not a licensable activity under the Licensing Act 2003. You do not need a premises licence or TEN to provide free alcohol at a private event. However, if tickets are sold for an event and alcohol is included in the ticket price, this may constitute sale of alcohol and require a licence or TEN. Take legal advice if unsure — the line between "free" and "included in the price" is not always obvious.
What is a Cumulative Impact Zone and can I open a new bar in one?
A Cumulative Impact Zone (CIZ) is an area designated by a local authority where the concentration of licensed premises is causing problems linked to crime, disorder, or public nuisance. In a CIZ, the default presumption is against granting new licences. You can still apply, but you must produce detailed evidence demonstrating that your premises will not add to the cumulative impact — for example, by proposing strict conditions, demonstrating a different customer profile, or showing that comparable premises in the area operate without incident. Engaging a specialist licensing solicitor before applying in a CIZ is strongly advisable.
Can a licensing review revoke our licence for a single incident?
Yes — in serious cases. A single incident of significant violence, drug-dealing at or near the premises, or evidence of systematic underage sales can trigger a review and result in revocation. Revocation is the most serious outcome and is reserved for cases where the authority concludes that no conditions could make the premises compatible with the licensing objectives. More commonly, reviews result in new or strengthened conditions. Maintaining thorough incident logs, good staff training records, and a positive relationship with the local police licensing team reduces the risk significantly.

Official bodies and resources

Health and Safety Executive

Regulator

Regulates workplace health, safety, and welfare, and enforces related legislation across Great Britain.

Companies House

Government

Incorporates and dissolves limited companies, registers company information, and makes it available to the public.

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Disclaimer

This information is for general guidance only and does not constitute legal advice. You should seek qualified legal help if your situation requires it.