New Vaping Products Duty comes into effect

A new excise duty on vaping products came into force in the UK on 1 October 2026, applying a charge of £2.20 per 10ml of vaping liquid. The duty is payable by manufacturers, importers and warehousekeepers approved by HM Revenue and Customs. Businesses may choose whether to pass the cost on to retailers and consumers. The government states the measure aims to reduce the affordability and appeal of vaping, particularly among young people and non-smokers.

HM Revenue and Customs has launched the Vaping Duty Stamps Scheme, which will provide digital traceability across the supply chain once fully implemented. The scheme includes tamper-evident yellow or red stamps on packaging to enhance consumer protection and support legitimate businesses by combating illicit trade. A six-month grace period allows wholesalers and retailers to sell existing non-duty liable stock until 31 March 2027, after which all vaping products must carry a valid stamp.

Tobacco duty rates were increased on the same day by £2.20 per 100 cigarettes or 50 grams of tobacco, in addition to the standard escalator, to maintain the financial incentive for smokers to switch to vaping. The government has also allocated £30 million annually until 2028-29 to Trading Standards, Border Force and HMRC to tackle illicit and underage sales of tobacco and vapes. Anyone suspecting illicit vaping products can report them to HMRC.

The Vaping Products Duty and Vaping Duty Stamps Scheme were announced at Spring Budget 2024, consulted on, and confirmed at Autumn Budget 2024. The duty stamp scheme was finalised in May 2025 following a consultation. The Office for Budget Responsibility forecasts the duty will raise over £550 million annually by 2030-31. Businesses manufacturing vaping products must obtain HMRC approval by 1 October 2026 or face penalties, including seizure of goods and potential criminal prosecution.