Free Shipping Over £25!
Or click and collect!
Or click and collect!
The Vape Tax Explained From a Coventry Vape Shop Perspective
Coventry Vaping Guides
The UK vape tax is coming and we've answered more questions about it in our Coventry store than almost any other topic. Here's everything you need to know, explained plainly and honestly.
2026
Year the Vape Tax Takes Effect
£2.20
Per 10ml Under the New Duty Rate
20%
VAT Already Applied on Top
The basics
What Is the UK Vape Tax and When Does It Start?
The UK government announced a new excise duty on vaping products as part of the Autumn 2024 Budget. Known informally as the vape tax, it introduces a flat-rate duty applied to vaping liquids based on nicotine content. It is separate from VAT, which already applies to vaping products at the standard rate of 20%.
The duty is scheduled to come into force in October 2026. At the time of writing, the headline rate is set at £2.20 per 10ml for nicotine-containing e-liquids. This is applied at the point of manufacture or import and will be passed along the supply chain to the end consumer at retail level.
For context, a 10ml bottle of e-liquid that currently retails for around £3.50 to £4.50 in our Coventry store could see its shelf price increase noticeably once the duty is factored in alongside the VAT that applies to the duty itself. We'd always recommend checking HMRC's official guidance for the most up to date rates as the detail may evolve before implementation.
"We've had more questions about the vape tax in the last year than almost any other single topic. Most customers want two things: clarity on the numbers and honest advice on what to do."
Touch of Vape team, CoventryWhat it means for your wallet
How Much Could the Vape Tax Add to Your Costs in Coventry?
The honest answer is that the real-world price impact will depend on how much of the duty manufacturers and retailers choose to absorb versus pass on. However, based on the announced rates, here is a realistic illustration of how prices on common product types could change.
| Product type | Typical price now | Estimated price from Oct 2026 | Approx. change |
|---|---|---|---|
| 10ml e-liquid bottle | £3.50 – £4.50 | £5.50 – £6.50 | +£2.00 approx. |
| 30ml shortfill | £8.00 – £11.00 | £12.00 – £15.00 | +£4–£5 approx. |
| 100ml shortfill | £12.00 – £16.00 | £20.00 – £26.00 | +£8–£10 approx. |
| Pre-filled pod (2ml) | £3.00 – £5.00 | £3.50 – £5.80 | +£0.50–£0.80 approx. |
These are approximate estimates based on published rates with VAT applied on top of the duty. Actual prices will vary by brand and retailer. What we can tell you from our own position as a Coventry vape shop is that we intend to be transparent about how these costs are applied and to absorb what we reasonably can.
Comparing the two
How the Vape Tax Differs From Tobacco Duty
A question we hear regularly in our Coventry store is whether the vape tax will eventually make vaping as expensive as smoking. It is worth understanding the key differences between how vaping products and tobacco products are taxed in the UK.
01
Tobacco duty is much higher overall
Tobacco duty on cigarettes is significantly higher than the proposed vape levy. A pack of 20 cigarettes in the UK already carries a duty burden that dwarfs the per-ml vape rate. Vaping will remain substantially cheaper than smoking even after the new duty is applied.
02
Vape duty is charged by volume
Tobacco duty is calculated per cigarette and per gram of rolling tobacco. Vape duty is charged per millilitre of liquid. This means heavier vapers who use larger volumes of liquid will feel the impact more than light users.
03
The intent behind the tax differs
Tobacco duty is partly punitive, designed to discourage smoking. The government has stated that the vape duty is primarily about ensuring vaping products contribute to tax revenues as the category has grown, rather than to discourage vaping as a quit-smoking tool.
04
Simultaneous tobacco duty increase
The Autumn 2024 Budget also increased tobacco duty at the same time as introducing the vape levy. The gap in cost between smoking and vaping was maintained deliberately, to preserve the financial incentive for smokers to switch.
Our honest view
What the Vape Tax Means for People Using Vaping to Quit Smoking
Our concern as a Coventry vape shop is straightforward. Vaping has been the single most effective tool we have seen help local people quit smoking over the last five years. Anything that raises the cost of vaping risks undermining that progress, particularly for people on lower incomes for whom the financial advantage over cigarettes has been a key motivator.
Public Health England and the NHS have both endorsed vaping as a legitimate quit-smoking tool. We believe the tax policy needs to reflect that endorsement in its implementation. We will continue to advocate for pricing structures that keep vaping accessible to those using it to move away from tobacco.
Practically speaking, our advice to current Coventry vapers is not to over-purchase stock ahead of the October 2026 implementation. E-liquid has a shelf life and quality degrades over time. A modest increase in your stock of preferred liquids is sensible. Bulk-buying years of supply is not.
Touch of Vape Coventry
Stock Up Sensibly at Our Coventry Store Before the Tax Comes In
Our team can help you work out how much stock makes sense for your usage and budget. We'll never oversell you and we'll always be honest about what's worth stocking up on.
If you'd like to explore our current range before prices change, our Vape Shop Coventry page has everything you need, from the brands we stock to our store location and opening hours.
What to watch
What Happens Between Now and October 2026
Between the announcement and implementation, there will be a period of consultation and potential adjustment to the finer details. The vaping industry is likely to lobby for changes to the rate structure and we'd expect to see further guidance from HMRC as the implementation date approaches.
We will keep our Coventry customers informed as the picture becomes clearer. If you have questions about how the vape tax affects specific products you buy from us, come into the store and ask. Our team follows this closely and we're happy to talk through what we know.
Part of our guide
Coventry Vape Guide
This article is part of our broader Coventry Vape Guide, where we cover local trends, product advice and honest commentary on what matters to Coventry vapers.
For more guides written specifically for people vaping in Coventry, head back to our Coventry Vape Guide where we cover everything from flavour trends to switching advice and local store news.
More from the Coventry Vape Guide
Related Guides for Coventry Vapers
Questions About the Vape Tax? Ask Our Coventry Team
We follow the legislative changes closely so you don't have to. Come in and we'll tell you exactly what we know.