The UK’s new vape tax is expected to raise £565 million a year by 2030/31, as ministers prepare to bring vaping liquids into the excise duty system for the first time.
From 1 October 2026, Vaping Products Duty will apply to all vaping liquids sold or supplied in the UK, whether or not they contain nicotine. The duty will be charged at a flat rate of £2.20 per 10ml of liquid, or 22p per millilitre.
That means a 2ml pod will carry 44p in duty, while a 10ml refill bottle will carry £2.20 before VAT and other costs are added.
The Treasury expects receipts from the new duty to rise from £135 million in 2026/27 to £565 million by 2030/31, according to figures certified by the Office for Budget Responsibility.
HMRC says the new regime will affect manufacturers, importers, wholesalers, retailers, distributors and consumers. It estimates that around 5.1 million people who vape will be affected by higher prices, with heavier users facing the greatest cost burden.
The government says the aim is to reduce the affordability and appeal of vapes, particularly among young people and non-smokers, while keeping an incentive for smokers to switch from cigarettes to lower-risk products.
To preserve that price gap, tobacco duty is also due to rise when the vaping duty starts. The one-off increase will be £2.20 per 100 cigarettes and £2.20 per 50g of other tobacco products.
Duty stamps and new compliance rules
The duty will sit alongside a new Vaping Duty Stamps Scheme, designed to make it easier to identify products on which duty has been paid.
From 1 October 2026, duty stamps must be attached to individual vaping products released onto the UK market. Retailers will be allowed to sell unstamped stock they already hold for six months, but from 1 April 2027 all vaping products held outside approved duty suspension arrangements must carry a valid duty stamp.
HMRC has opened applications for manufacturers, importers and warehousekeepers that need approval to keep trading legally after the rules take effect. Businesses have been told to apply early, as checks can take at least 45 working days.
From October, it will be unlawful to manufacture vaping products in premises that have not been approved by HMRC. This includes mixing non-duty-paid liquids to produce a liquid intended for use in a vape, even if it is not produced for commercial sale.
Overseas manufacturers supplying the UK will also be brought into the system. HMRC says it will be against the law to import an overseas manufacturer’s vaping products into the UK without duty stamps, unless the products are going into approved duty suspension premises.
Travellers face a 50ml limit
Border rules are also set to change. Budget documents published by the UK Government in November 2025 confirmed that a new 50ml duty-free passenger allowance for vaping products will be introduced from October 2026.
HMRC guidance says travellers will be able to bring a small amount of vaping products into the UK for personal use without paying Vaping Products Duty, with the final allowance to be confirmed before the duty begins.
According to TRBusiness, which said it had seen HMRC stakeholder guidance, passengers aged 17 or over entering Great Britain will be able to bring in up to 50ml of vaping liquid for personal use without paying VPD. Those carrying more than 50ml would have to declare the goods and pay duty on the full quantity, not just the amount above the allowance. The report said different arrangements will apply in Northern Ireland.
The changes mean vapes will become more expensive while the legal supply chain faces tighter checks. Ministers say the policy is intended to curb youth uptake and raise revenue while maintaining a price incentive for smokers to choose vaping over cigarettes. The test will be whether higher prices reduce youth and non-smoker use without discouraging adult smokers from switching, or encouraging more purchases outside the regulated market.
