Timeline Of UK Vape Tax Legislation
Since it was first announced in 2023, the upcoming UK 'vape tax' or Vaping Products Duty (VPD) has been making waves amongst vaping businesses and customers alike.
Staying on top of where the legislation is up to, and what comes next, is important if you don't want to be caught out once the new duty scheme is enforced from the 1st October 2026.
That's why we have created this timeline of key dates surrounding the vape duty, so you can keep updated as things progress and prepare accordingly to minimise the impact on your vaping journey.
We will constantly update this timeline as new dates and details of the tax are revealed, so be sure to check back often!
If you want to learn more about the vape tax in general, you can find all the latest information by clicking the button below:
What's Happened So far?
Government Announcements To Date
March 2024
We first heard the proposition of a vape tax from former Conservative Chancellor Jeremy Hunt, announced during the 2024 Spring Budget.
It was described as an extension of the ongoing Tobacco and Vapes Bill, which intends to drive down national smoking rates, reduce pressure on vital services like the NHS, and discourage under-18s and adult non-smokers from starting vaping by driving up costs and restricting black market activity.
The original proposition was for the vape tax to be a tiered system, with duties scaling upwards in line with vape liquid nicotine content. This would have meant higher-strength products, like 18mg or 20mg e-liquid, would be charged more than lower strengths like 3mg or 6mg.
The proposed vape tax was then subject to a 12-week public consultation. This gave UK vapers and vape industry stakeholders the chance to weigh in on the new duty, as well as other vaping reforms within the Tobacco and Vapes Bill, including the landmark disposable vape ban, which at the time had not yet come into effect.
The public consultation received largely positive feedback, with most people in favour of the new measures. Particularly the move to ban single-use vapes, which would eventually be enforced from the 1st June 2025.
July 2024
A snap general election saw Rishi Sunak's Conservative Party replaced by Kier Starmer's current Labour Government.
During their final days in power, the Conservatives raced to push several new policies and reforms into UK law. Due to its scale and complexity, however, the Tobacco and Vapes Bill was not among them.
Despite temporarily being in jeopardy, then-new Prime Minister Kier Starmer confirmed that they would pick up the Tobacco and vapes Bill where the Conservatives left off, making the vape tax proposition a reality once again.
October 2024
During the 2024 Autumn Budget, Labour Chancellor Rachel Reeves announced more details regarding the vape duty.
The Chancellor revealed that the Labour version of the vape tax would be a new excise duty to be charged alongside standard VAT, much like those already applied for tobacco, alcohol and fossil fuels. Its official title would be The Vaping Products Duty (VPD).
It was revealed that the vape duty would be applied as a flat rate of 22 pence per millilitre of vape liquid, regardless of nicotine content. This marked a distinct change from the Conservatives' original plan for a tiered system.
This news meant that even nicotine-free e-liquids and alternatives like CBD vape liquids would be captured within the duty scheme.
The decision to apply an excise duty to vape liquids confirmed the Government's recognition of vaping products as harmful to health, with excise duties historically applied to products that are harmful to people or the environment. The revenue gained from excise duties is meant to offset the social costs incurred by the consumption of such products.
Despite this seemingly negative stance on vaping, Chancellor Reeves noted that tobacco duties would also be increased alongside the vape tax. This is to ensure vaping remains a more affordable alternative for adults looking to quit smoking, while making it less appealing to under-18s and those who have never smoked previously.
An enforcement date of the 1st of October 2026 was set for the new duty, giving consumers and industry stakeholders a deadline to prepare for the significant changes the duty would bring about.
November 2024
Following further technical consultation regarding the Vaping Products Duty (VPD), the Government announced a Vaping Duty Stamp Scheme (VDS) would be brought in alongside the vape duty to allow for proper traceability and enforcement.
It was confirmed that, following the enforcement date, unique vape duty stamps would need to be affixed to the outermost packaging of all vape liquids before they can be legally sold.
These stamps are designed to:
- Provide proof of compliance and that duties have been paid
- Provide traceability for authorities to track compliant products through every stage of the supply chain.
- Restrict black market activities and make it much harder for illegal vaping products to reach consumers.
Following this announcement, key dates were set for 2026 and beyond for implementation of the duty and stamp schemes. This was accompanied by critical information and guidance for businesses to help them prepare for the duty stamp application process.
What Happens Next?
Vape Duty Implementation Deadlines
1st April 2026
From this date, e-liquid manufacturers like ourselves must apply to HMRC for approval to the Vaping Duty Stamps Scheme (VDS).
In order to be accepted, businesses must provide extensive evidence proving compliance with all regulations, including (where necessary) proof of funds to ensure they will be able to pay the duty. HMRC have advised that they may take up to 45 working days to complete their checks.
Once approved, HMRC will connect businesses with one of their approved suppliers who will be contracted to print the duty stamps. It will be the manufacturer's responsibility to invest in the necessary end-of-line machinery to apply the stamps correctly to every single bottle produced.
The stamps must be tamper-evident, meaning they seal the product and will be broken only when opened by the end consumer. They must appear on the outermost packaging of vape liquids. If sold without a carton, the seal must be fixed to the bottle itself.
If manufacturers cannot prove they make compliant products according to TPD/TRPR regulations, or if they don't have the funds to cover duty costs, then they may not be approved. If this is the case, they will have 6 months from the 1st October as a 'grace period' to sell through any unstamped stock. After this date, they can no longer legally sell products without successfully re-applying to the duty scheme.
If, for any reason, a business has not been approved by the 1st October 2026, they cannot legally produce vaping products in the UK, and will be subject to civil and criminal sanctions if they do, potentially leading to prison sentences.
1st October 2026
This is the official start for the VPD and VDS laid out by the Government.
It is also the start of the final 6-month grace period for companies to sell through any remaining unstamped e-liquids. From this date, you might notice certain brands or product ranges disappearing from shelves, as duty-stamped products take their place.
For all approved manufacturers, vape duty must now be paid, and physical vape duty stamps must be affixed to every individual product captured by the scheme, including pre-filled vape pods and e-liquid refill bottles.
The duty stamp will be a physical product incorporating digital features like a QR code for traceability and authentication, and will also capture data, such as:
• information about the manufacturer or business that affixes the stamp
• product details
• the product's journey through the supply chain.
1st April 2027
This date is the official end of the grace period for unstamped vape liquids.
After this date, Trading Standards, HMRC, and other relevant authorities will have a zero-tolerance policy for any vape liquids sold outside of the vape duty scheme.
It will be the primary responsibility of retailers to ensure they only stock and sell approved stamped products, and they will face reprimands if found to be ignoring due diligence.
The only products exempt from the duty after this date are those held in duty suspension.
According to the UK Gov website:
"Duty suspension is an arrangement with HMRC which means you do not have to pay Vaping Products Duty straight away if the vaping products are stored in certain approved places, for example an excise warehouse or a registered store."
In most cases, UK manufacturers will be able to register a place with HMRC where they can store their vaping products (called a 'registered store'). This allows manufacturers to produce stock to cover future orders without having to pay everything up-front right away, helping to make operations financially sustainable while keeping up with projected customer demand.
Once products are put into packaging for retail sale however, they can only be moved once while in duty suspension - from one approved place to another, for example.
At LiQuid, we intend to apply and become approved excise/customs warehouse keepers, which will allow us to keep producing enough e-liquids to keep all of our customers happy without incurring crippling duty costs all in one go.
This will also allow us to produce the e-liquids you love at our Stockport facility, and then move them to our separate distribution centre without paying all the duty up-front - that will be our 'one move' under 'duty suspension'. Once your orders are picked and packed, we will pay our vape duty accordingly, so you can rest assured you are receiving a fully traceable, compliant product.
Expected Future Increases To the Vape Duty
No specific future increases have been officially scheduled beyond the October 2026 implementation date.
Sadly, this does not mean the vape tax won't increase in years to come, as the UK Government has a precedent of raising excise duties according to political, economic and social pressures.
We have seen this many times over the years with alcohol, tobacco and other products deemed harmful enough to warrant an excise duty.
Tobacco excise duties, for example, are set to rise alongside the vape duty being introduced, to ensure smoking remains a more expensive and less appealing option vs vaping, to encourage smokers to switch.
At this stage, any future changes to the information we have been given would be purely speculation, so we will wait for concrete updates before updating you further.
In the meantime, we will do everything we can to limit the impact of the vape tax on our customers, and aim to remain one of the best value e-liquid brands in the UK.
