Category: Excise duties

Excise duties

Vaping products duty schemes

Apr 9, 2026 by Terry Harris 0 Comments

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.

Source:HM Revenue & Customs | 06-04-2026
Excise duties

Small duty cuts on draught products from 1 February 2025

Feb 6, 2025 by Terry Harris 0 Comments

From 1 February 2025, alcohol duty on draught pints has been cut for the first time in a decade, saving drinkers 1p per pint. Small breweries also benefit from tax relief. However, duty on non-draught alcohol has risen with inflation, impacting bottled and canned drinks.

Small alcohol duty cuts on draught pints came into effect on 1 February 2025. This change was announced as part of last year’s Autumn Budget measures. The change has seen a reduction in the alcohol duty rates for draught products below 8.5% ABV by 1.7% in cash terms (or 5.1% if compared to the baseline expectation that rates would be increased with the Retail Price Index). This is the equivalent of a 1p duty reduction on an average 4.58% pint and the first duty reduction on pints of beer in 10 years.

There has also been an increase to small producer relief to help small breweries to innovate and grow. Together these tax cuts are worth £85 million and are tailored to support the alcohol sector to innovate and grow.

Commenting on the changes the Exchequer Secretary to the Treasury said:

Our pubs and brewers are an essential part the fabric of the UK and our brilliant high streets. Through draught relief, small producer relief, and expanding market access for smaller brewers, we will help boost sector growth and deliver our Plan for Change to put more money in working people’s pockets.

In addition, mandatory duty stamps for spirits will come to an end from 1 May 2025. This will help distilleries, including Scotch whisky makers, badge their products, increasing their chances to sell their products through pubs and supermarkets.

On a less positive note, also from 1 February 2025, the government has increased the alcohol duty rates that apply to all non-draught products in line with Retail Price Index inflation.

Source:HM Treasury | 03-02-2025