Businesses in the vaping sector are reminded that the new Vaping Products Duty and the Vaping Duty Stamps Scheme will take effect from 1 October 2026. HMRC is urging manufacturers, importers, wholesalers and retailers to make sure they are ready for the introduction of the Vaping Products Duty and the associated Vaping Duty Stamps Scheme.

Vaping Products Duty is intended to form part of the government's wider measures to tackle youth vaping, improve public health and support its ambition to create a smoke-free generation. The duty is expected to raise more than £550 million a year by 2030–31.

The new rules will affect the supply chain in different ways. Businesses that manufacture vaping products or handle products under duty suspension need to ensure they have the necessary HMRC approvals before the new regime begins. Retailers and wholesalers should check with their suppliers that the products they stock meet the new requirements.

UK representatives and warehousekeepers can buy transitional duty stamps until 30 November 2026 and affix them until 31 December 2026. From 1 January 2027, only digital duty stamps can be affixed to vaping products. Retailers and wholesalers can also continue to sell eligible unstamped vaping products already held before the new rules take effect until 31 March 2027. This gives businesses some time to adjust their stock and supply arrangements. From 1 April 2027 all vaping products sold or supplied in the UK must carry a valid stamp.

Consumers will also start to see changes to vaping product packaging from October. New rules will apply to travellers bringing vaping products into the UK for personal use from 1 October 2026. There are different rules for travellers entering Great Britain and Northern Ireland.

HMRC has warned that businesses failing to comply with the new requirements could face civil or criminal sanctions.
 

The Chancellor has confirmed a series of duty increases on tobacco, vaping liquid, and alcohol that will take effect over the next year, with new rates intended to balance public health concerns with support for producers and the wider hospitality sector.

As part of the Autumn Budget measures the Chancellor announced that the duty rates on tobacco products were increased by 2% above the rate of inflation (based on RPI) effective from 6pm on 26 November 2025. The one-off increase of £2.20 per 100 cigarettes or 50g of other tobacco products and annual uprating of tobacco duty by RPI + 2% next year will take effect from 1 October 2026

It was also announced as part of last year’s Budget measures that the government will introduce a new duty at a flat rate excise duty of £2.20 per 10ml on all vaping liquid which will come into effect from 1 October 2026.

The Chancellor also confirmed that effective from 1 February 2026, the government will increase the Alcohol Duty rates in line with Retail Price Index inflation. The Small Producer Relief discounts will also be uprated, so eligible small producers receive relative duty reductions as now. These changes will also take effect from 1 February 2026.

The government considered various views, from cutting or freezing alcohol duties to increasing them above inflation. The decision they announced seeks to balance supporting alcohol producers and the hospitality sector with the need to reduce alcohol related harm.