A new HMRC tax on vaping products takes effect today, Thursday, October 1, with the duty set at £2.20 per 10ml of vaping liquid, whether or not it contains nicotine. The levy is payable by manufacturers, importers and warehouse keepers approved by HM Revenue and Customs (HMRC).
The measure is designed to reduce the appeal of vaping among young people and non-smokers. Campaign group ASH says there are around 5.5 million people who vape in the UK, about 10 per cent of British adults.
Stamp scheme and grace period
HMRC has also unveiled the Vaping Duty Stamps Scheme, which it hopes will cut down on illegal vapes. Officials say it will ensure traceability across the entire supply chain, bolstering consumer protection and supporting high streets in their battle against illicit trade.
A six-month grace period has been granted to allow wholesalers and retailers sufficient time to sell off existing stock, before all vaping products sold in the UK are required to carry a valid vaping duty stamp from April 1. HMRC says tobacco duty rates have also risen to preserve the incentive for existing tobacco smokers to make the switch to vaping, with an increase of £2.20 per 100 cigarettes or 50 grams of tobacco, on top of the standard tobacco duty escalator.
New travellers' allowances
New travellers' allowances from October 1 permit those arriving in Great Britain to bring up to 50ml of vaping liquid for personal use without incurring duty or tax. Any amount exceeding this must be declared, with duty paid on the full quantity.
James Murray, Financial Secretary to the Treasury and Paymaster General, said: "Our new measures will help get illicit vapes off high streets across the country. We're backing all those retailers who play by the rules by making it easier for law enforcement agencies to take action against those who don't."
Health minister Karin Smyth said: "Our public health advice is clear: while vaping is less harmful than smoking and can help adult smokers to quit, children and non-smokers should never vape. These measures are an important step in our ambition to tackle youth vaping by reducing the affordability of vaping products, which goes hand-in-hand with the work we are already doing to tackle the appeal and availability of vapes on our high streets."
Industry criticism
Critics in the industry say the changes will see more people take up smoking. John Dunne, director general of the UKVIA, warned this week: "The immediate impact of the Vaping Products Duty will be to make vaping significantly more expensive for millions of adults, including people who have switched completely away from cigarettes."
Mr Dunne added: "There is absolutely no debate that we need to prevent young people from accessing vaping products, and it's not that the industry is flatly opposed to a duty increase, but the incoming rate is nothing short of a public health time bomb.
"If we want to talk about duty, how about the Government's duty to protect one of the most effective tools available to adults trying to quit smoking? The Government says the duty will help reduce the appeal of vaping to young people while preserving the financial incentive for smokers to switch, with the money raised also intended to support the NHS.
"But if the result is more adults returning to smoking and a greater burden on the health service from smoking-related illness, that is completely at odds with what this policy is trying to achieve."
Full list of new HMRC measures from October 1
Documents released last month explaining the changes set out what would be introduced as the new rules come in. The list of changes is as follows:
- Vaping Products Duty (VPD) and the Vaping Duty Stamps Scheme start on October 1 2026. VPD will become part of the existing excise regime set out in the Customs and Excise Management Act 1979 (CEMA).
- Consumers in the UK will begin to see changes to vaping products and packaging from October 1 2026.
- Vaping Products Duty applies to all vaping liquids, whether they contain nicotine or not.
- The excise duty rate is £2.20 per 10ml, as announced at Autumn Budget 2024.
- Retailers and wholesalers can continue to sell eligible unstamped stock they already hold until March 31 2027.
- From April 1 2027, all vaping products outside duty suspension in the UK must carry a valid vaping duty stamp.
- From January 1 2027, only digital duty stamps can be affixed to vaping products.
- New rules for travellers to the UK will apply from October 1 2026. There are different rules for travellers entering Great Britain and Northern Ireland.
