The UK is about to make vaping a lot more expensive

Starting 1 October, vapers across the UK will face higher prices as the government introduces a new Vaping Products Duty (VPD) – a flat excise tax of £2.20 per 10ml of e-liquid, applying to all vaping liquids, whether they contain nicotine or not.

With 20% VAT added on top, the effective increase at retail will be around £2.64 per 10ml.

HMRC has announced that businesses in the vaping supply chain must now apply for approval under the new Vaping Products Duty and Vaping Duty Stamps Scheme to continue trading legally from October.

Why is the government taxing vapes?

The policy forms part of the government’s “Plan for Change” to create a smoke-free generation and curb youth vaping. Announced in the Autumn Budget 2024 and confirmed after consultation, the duty aims to reduce the affordability and appeal of vaping products, especially to non-smokers and young people.

Treasury analysis projects the tax will raise more than £550 million a year by 2030-31, with funds directed toward public services such as the NHS. It sits alongside increases in tobacco duties, designed to maintain a price incentive for smokers to switch to vaping rather than continue smoking.

A parallel Vaping Duty Stamps Scheme will require security-featured stamps on individual retail packaging of vaping products.

This is intended to help HMRC identify non-duty-paid goods, strengthen supply chain controls, and combat illicit trade. Penalties for non-compliance include civil fines and potential criminal prosecution.

Timeline for businesses and retailers

Now (from 1 April 2026): Manufacturers, importers, and warehousekeepers can (and are urged to) apply for HMRC approval. The process can take at least 45 working days.
Until 31 August 2026: Approved businesses can buy transitional duty stamps.
From 1 September 2026: Only full digital-feature stamps available.
1 October 2026: Duty becomes payable; all new vaping products released for sale in the UK must carry a duty stamp. Retailers can continue selling existing unstamped stock for a six-month transition period.
1 April 2027: All vaping products held outside approved duty suspension must have a valid stamp.

Retailers won’t pay the duty directly but will see it passed through from suppliers. HMRC plans further engagement with the retail sector later in 2026.

How much more will it cost vapers?

The flat-rate structure hits volume, not nicotine strength:

A typical 10ml e-liquid bottle: +£2.20 duty (+£2.64 with VAT)
A 50ml shortfill: +£11 duty
A 100ml shortfill: +£22 duty
A 2ml pre-filled pod: +44p duty (about 53p with VAT)

Heavy users consuming 10ml per day could see an extra £80 or more per month. Industry observers expect most of the cost to be passed on to consumers, though some businesses may absorb part of it initially.

An estimated 5.1 million people in the UK vape, and the government acknowledges that higher prices will affect them, with heavier users bearing the greatest burden. There’s also a risk that some may switch back to tobacco, which is why tobacco duties are rising in tandem.

What happens next

Vaping products remain legal and available, but the era of relatively low-cost e-liquids is ending. Adult smokers considering a switch to vaping will still face a price advantage over cigarettes (thanks to the parallel tobacco duty rises), but casual or recreational vapers, especially younger ones, will feel the pinch.

Businesses that haven’t started preparing should act quickly – HMRC is clear that early registration is essential to avoid disruption from October onward.

For full details, affected companies should check the official GOV.UK guidance on “vaping duty” and begin the approval process now. The government has also released stakeholder communications materials to help the sector get ready.