Excise duties

The new Vaping Products Duty (VPD) and Vaping Duty Stamps (VDS) are being introduced from 1 October 2026. In advance of the launch of the new schemes, HMRC opened applications for approval for manufacturers, importers and warehouse keepers on 1 April 2026.

This means that businesses affected by these changes should act now. Early registration is essential to ensure approval is in place before the rules take effect, particularly as applications can take time to process and at least 45 working days if further information is needed.

VPD will apply to all vaping liquids, whether they contain nicotine or not, with a flat-rate duty charged. At the same time, duty stamps must be affixes to individual retail products to show the duty has been accounted for. These stamps are designed to support compliance and help tackle illicit trade.

There is a transitional period to allow businesses to prepare. Retailers can continue to sell existing unstamped stock until 31 March 2027, but all new products from October 2026 must meet the new requirements and have a duty stamp.

HMRC’s Director of Indirect Tax, said:

‘From 1 April 2026, UK vape manufacturers, importers and warehouse keepers can apply to HMRC for Vaping Products Duty and Vaping Duty Stamps Scheme approval, which is essential for these businesses to continue trading legally from 1 October.

Our guidance brings all the key information together, and using it now will help firms prepare properly, avoid errors and ensure they can continue trading when the new requirements apply from October.

The Chancellor, Philip Hammond recently paid a visit to an independent brewery in Liverpool and confirmed that the duty rates on beers, spirits and most ciders will be frozen at the current rates for another year from 1 February 2019. These measures mean that the average price for a bottle of whisky will be £1.50 less and a pint of beer 14p less than if the rates had increased as expected based on the duty escalator.

The Chancellor hailed the duty freeze as offering much needed support to the pubs and drink industry as well as for beer lovers who can raise a toast as Dry January has finished. However, it was not all good news as an RPI inflationary increase in the duty band for high strength sparkling cider known as ‘white ciders’ with alcohol levels above 5.5% came into effect from 1 February 2019. The price of wine also increased by RPI inflation from the same date.

Philip Hammond, Chancellor of Exchequer, said:

‘These duties would have otherwise come into effect today (1 February 2019) but instead we’re supporting an industry that employs 900,000 people across the UK. Whether it’s local pubs, craft cider mills or independent distillers, this government is helping these businesses to thrive and ensuring they remain at the heart of our economy.’

The government is also looking at the efficiency of the Small Brewers Relief to make sure the scheme continues to support the country’s smallest beer makers, helping them to grow and expand into new markets.

As part of the Budget measures the Chancellor announced that the duty rates on beers, spirits and most ciders will be frozen at the current rates. These measures mean that a bottle of whisky will be £1.54 less and a pint of beer 14p less than if the rates had increased as expected based on the duty escalator.

However, the Chancellor did announce an RPI inflationary increase in the duty band for high strength sparkling cider known as ‘white ciders’ with alcohol levels above 5.5% from 1 February 2019. The price of wine will also increase by RPI inflation from the same date.

The duty rates on tobacco products were increased by 2% above the rate of inflation (based on RPI) effective from 6pm on 2 October 2018. The Chancellor also announced that the duty for hand-rolling tobacco will increase by an additional 1% (i.e. 3% above RPI) at the same time.