The Vaping Products Duty comes in on 1 October - here's what you need to know

From 1 October 2026 there will be a new tax of £2.20 per 10ml of e-liquid for vaping products, known as the Vaping Products Duty (VPD). It was announced at Budget 2024 and will come into effect from 1 October 2026. It is sometimes referred to as the Vape Tax or Vape Duty.

The VPD is part of a wider government strategy to reduce youth vaping by addressing the price of vapes so that they are no longer at “pocket money prices”. It is one part of a package of measures which also includes the ban on disposable vapes, introduced in June 2025, and new powers under the Tobacco and Vapes Act to regulate areas such as packaging, product appearance and retail displays. (Have you heard there is a consultation open on this that closes on 2 Oct- do respond here and see ASH’s guide here!) 

The tax is a flat rate on all liquids, so it is the same regardless of the strength of nicotine in the liquid (and includes nicotine-free liquid). It does not apply directly to devices, coils, tanks or other accessories. Prefilled products that contain vaping liquid will be subject to the duty. 

Vaping duty stamps are part of the new system and will provide an additional way for HMRC to identify legitimate products and tackle non-compliance in the market. The new excise duty also gives HMRC, Border Force and trading standards additional enforcement tools to help tackle illicit imports and ensure businesses are complying with the rules.

The tax will only apply to products manufactured or imported from 1 October 2026, so prices will not necessarily change overnight.

Retailers can continue to sell existing stock that was produced or imported before 1 October. As that stock runs out, new duty-paid stock will enter the market and prices may change product by product. Popular liquids may sell through existing stock sooner.

There is a transitional period for existing stock: retailers can sell unstamped stock they already hold until 31 March 2027. From 1 April 2027, vaping products outside duty suspension will need to have a vaping duty stamp. 

It's important to note that prices might not increase by the full £2.20 duty - manufacturers may decide to absorb some of that cost themselves depending on how the market reacts. 

Good question! The transitional period applies to distribution of products (not just those being sold). So, if you work for a service that provides vapes as a cessation aid from 1 April 2027, all products you distribute will need to be duty-paid products and you are responsible for ensuring compliance. 

You must also ensure that any new products you acquire from 1 October 2026 are duty-stamped. 

If you have vouchers for products you can continue to use these and they will be eligible for products with the duty paid. If you have questions, you should contact your Regional Tobacco Lead. 

This is an important question and the answer must be yes. 

Smoking remains the leading cause of preventable death in the UK, and it is essential that action to reduce youth vaping does not inadvertently make it harder, and more expensive for people who smoke to quit.

Vaping is significantly less harmful than smoking and has an important role to play in smoking cessation. ASH research found that nearly 3 million people in Britain had quit smoking using a vape over the previous five years, highlighting the scale of vaping’s role as a quitting aid. A recent Cochrane review found that nicotine vapes are more effective for quitting than nicotine replacement therapy, and probably better than e-cigarettes without nicotine. 

That means the price difference between vaping and smoking matters and vaping must remain cheaper than smoking. The government has planned an increase in tobacco taxes alongside the introduction of VPD, helping to maintain a financial incentive for people who smoke to switch from cigarettes to vaping.

We know that smokers are more likely to live in our most deprived communities and many experience severe economic hardship. It is important that stop smoking services continue to provide current smokers with free vaper starter kits to help them start their quit journey, for example through swap to stop. 

Introducing a new tax is only the beginning. Its impact will need to be carefully monitored as the vaping and nicotine market responds.

Evaluation should consider the following important issues: 

• The impact on youth vaping. This is a key part of what the policy is hoping to achieve and we should expect to see rates falling.
• The impact on smoking and quitting behaviours. Do smoking rates rise or quitting rates slow down? 
• The price difference between tobacco and vaping products.
• Whether the VPD has impacted harm misperceptions of tobacco and vaping products, either in a positive or negative way. 
• How effective the duty is assisting with enforcement and measurement of the illicit market. 

It will be important to understand how the VPD interacts with the other regulatory measures being introduced. The Treasury and HMRC will need to work closely with the Department of Health to understand how taxation and regulation work together and whether changes in the market create unintended consequences.

One way to do this is to have a cross-government strategy covering the whole tobacco and nicotine market. This should consider how taxation applies across different products, including vaping devices and liquids and emerging products such as nicotine pouches, and how tobacco taxation can support the wider objectives of the Tobacco and Vapes Act.

HMRC has published detailed guidance for businesses preparing for the Vaping Products Duty and Vaping Duty Stamps Scheme.

The guidance covers who is affected, how the duty works, duty stamps, transitional arrangements, importing and selling vaping products, record keeping, compliance and penalties.

Read the HMRC guidance: Prepare for Vaping Products Duty and the Vaping Duty Stamps Scheme