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How the Proposed Vape Tax Could Affect Vapers?
Legal Guides
The UK vape tax announced in October 2024 will change the cost landscape for vapers from October 2026. Here is an honest assessment of how it could affect your costs, your choices and the wider vaping market.
£2.20
Duty Per 10ml, the Core Rate for Nicotine-Containing Liquid
2026
Implementation Year, Prices Change From October 2026
Still
Cheaper
Than Smoking. The Cost Gap Narrows But Does Not Close
The honest assessment
How the Vape Tax Will Affect Vapers
Prices will go up, but vaping will still be cheaper than smoking
The tax narrows the cost advantage of vaping but does not eliminate it
The vape tax will increase the cost of nicotine-containing e-liquids from October 2026. At £2.20 per 10ml, a typical 10ml bottle that currently retails at £4–£8 will face a significant duty addition. How much of this is passed through to retail prices will vary between suppliers and retailers, but meaningful price increases across the market are expected. However context matters: the cost of vaping a typical habit will still be substantially lower than the equivalent cost in cigarettes, where duty rates are considerably higher. The tax narrows the financial gap without closing it.
Impact by category
How Different Vapers Will Be Affected
Standard Nicotine E-Liquid Users: Most Affected
Vapers using nicotine-containing e-liquids at standard concentrations will see the most direct impact of the duty. At £2.20 per 10ml, a vaper who uses two 10ml bottles per week faces an additional duty cost of approximately £4.40 per week, around £228 per year, before VAT on the duty. This is a significant cost increase for a product that many people use as a harm reduction tool to stay off cigarettes. The total cost of their habit will still compare favourably to cigarettes, but the financial advantage shrinks.
Shortfill and High-Volume Users: Variable Impact
Vapers using large-format shortfill liquids (typically 50ml or 100ml bottles with nicotine shots added separately) will be affected differently depending on how the duty interacts with the shortfill format. The duty applies to nicotine-containing liquids, the nicotine shots added to shortfills contain nicotine and will attract duty. The larger base liquid may be taxed at the nicotine-free rate. The overall cost impact per ml of finished liquid will depend on how the supply chain adapts to the duty structure.
Nicotine-Free Vapers: Lower Impact
Vapers who have successfully stepped down to zero-nicotine products will be taxed at the lower nicotine-free rate. This is a meaningful benefit for the group that has made the most progress in their cessation journey and represents a relatively proportionate approach to taxing the two product categories.
Recent Switchers From Cigarettes: Context Matters
For smokers who have recently switched to vaping, the tax must be assessed against the alternative, the cost of continuing to smoke. At current tobacco duty rates, a 20-a-day smoker spends approximately £4,000–£5,000 per year on cigarettes. A typical vaping habit costs £500–£1,500 per year currently. Even after the duty increase, the cost differential remains very substantial. For Leicester smokers considering switching, the financial case for vaping over cigarettes remains strong post-tax.
01
Plan ahead if you want to stock up before October 2026
The duty comes into force in October 2026. Vapers who purchase liquids in advance of this date will pay current pre-duty prices. However storage limitations and liquid expiry dates (typically two years) limit how much advance purchasing is practical.
02
Nicotine-free step-down becomes more financially attractive
The lower duty rate on nicotine-free products makes the financial case for completing a nicotine step-down even stronger from October 2026 onwards.
03
Buying from registered UK retailers remains important
The duty system applies to legitimate supply chains. Unregulated imports circumvent duty but also circumvent the UK safety framework for vaping products.
04
We will keep our Leicester customers informed
Our team will update customers as implementation details are confirmed by HMRC in the consultation process leading up to October 2026.
Touch of Vape Leicester
Talk to Our Leicester Team About Managing Your Costs
We help customers find the best value in our range and will keep you informed as the tax implementation details develop.
To find our Leicester store, visit our Vape Shop Leicester page.
From our Legal guide
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Our Legal guide covers the vape tax in full, what it is, why it is being introduced, what it means for vapers and retailers and how it compares to tobacco duty.
Find more vape tax guides in our Legal guide.
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