Off License UK: Meaning, Rules, and How to Start One


1. What Is an Off License?

An off license (also written as “off-licence”) is a retail shop in the UK licensed to sell alcohol for consumption off the premises. This includes:

  • Corner shops
  • Supermarkets
  • Newsagents
  • Specialist alcohol stores

It differs from pubs or bars, which are licensed for on-premise consumption.


2. What Can an Off License Sell?

In addition to alcohol, most off licenses also sell:

  • Tobacco products
  • Soft drinks and snacks
  • Lottery tickets
  • Groceries and convenience items

Some may include services like mobile top-ups or courier pick-ups.


3. What Licence Do You Need to Run an Off Licence?

To legally sell alcohol in the UK, you need:

A. Premises Licence

  • Allows a specific address to sell alcohol
  • Issued by your local council
  • Must include the times and types of alcohol sold

B. Personal Licence

  • Allows a named individual to authorise alcohol sales
  • Requires passing the Award for Personal Licence Holders (APLH)
  • Must be 18+ and have no serious criminal convictions

Every off license must have at least one personal licence holder.


4. How to Apply for an Off Licence

Step-by-step:

  1. Apply for a premises licence from your local council
  2. Take and pass the APLH exam
  3. Apply for a personal licence with proof of training and criminal background check
  4. Display both licences clearly in the shop
  5. Follow all conditions (e.g., no underage sales, operating hours)

The full process can take several weeks.


5. Rules and Responsibilities of Off Licence Owners

  • No alcohol sales to anyone under 18
  • Challenge 25 policy required
  • Sales outside licensed hours are illegal
  • Must prevent drunkenness and public nuisance
  • Alcohol must be stored and labelled correctly
  • CCTV and staff training may be required

Breaching licence terms can lead to fines, loss of licence, or prosecution.


6. Costs of Opening an Off Licence

Typical costs include:

  • Licence applications (£100–£1,900 based on rateable value)
  • APLH course and exam (£150–£200)
  • Business rates and rent
  • Stock and refrigeration equipment
  • Insurance (public liability, employer’s, etc.)

Start-up costs vary depending on size and location.


7. Advantages of Running an Off Licence

  • Steady demand for alcohol and everyday goods
  • Can operate long hours (if licensed)
  • Potential for loyal local customer base
  • Low-cost inventory items yield high margins

8. Challenges of Running an Off Licence

  • Strict licensing laws and enforcement
  • Competition from supermarkets and chains
  • Risk of crime or antisocial behaviour
  • Seasonal or late-night work required

Success depends on good location, pricing, and compliance.


Frequently Asked Questions

Q1: Can I sell alcohol online from an off licence?
Yes, but you need a premises and personal licence, and must verify buyers’ age.

Q2: How long does a premises licence last?
It lasts indefinitely but must be maintained and not breached.

Q3: Do I need both licences if I own the shop?
Yes. One is for the shop (premises), and one is for you as a responsible seller (personal).

Q4: What happens if I sell alcohol to a minor?
You can be fined, prosecuted, and lose your licence.

Q5: Can I apply for a licence before renting a shop?
You need a specific address to apply for the premises licence, so the location must be known.

Q6: Is insurance required for an off licence?
Yes. Public liability, employer’s liability, and stock insurance are recommended.


Conclusion

Running an off license can be a profitable business if done legally and responsibly. With the right licences, location, and customer service, it offers a steady income in both urban and rural areas. Always stay up to date with licensing laws to operate safely and successfully.


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