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Most of the world measures alcohol as a percent of volume (abv). In the U.S., alcohol in beer is measured by weight (abw). Since alcohol weighs roughly 20% less than water, abw measures appear 20% less than abv measures for the same amount of alcohol. In Europe, beer strength tends to be measured on the basis of the fermentables in the wort. Until recently, Britain used OG (original gravity), which is 1000 times the ratio of the wort gravity to that of water. Thus a beer with an OG of 1040 was 4% more dense than water, the density coming from dissolved sugars. You can generally take one tenth of the last two digits to estimate the percentage alcohol by volume once the dissolved sugars are fermented. In the example used, the abv would be approximately 4% (40/10 = 4%) Currently, British beer is being taxed on its actual %ABV rather that the older OG so you'll often find both displayed. Continental Europe tends to uses degrees Plato. In general, the degrees Plato are about one quarter ...
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How is alcohol strength measured?
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