The 2026 UK Vape Tax Confirmed: Understanding the Facts and Implications
It has been a turbulent period for vapers in the UK, as Sir Keir Starmer’s Labour government begins outlining its plans for future legislation. Several measures originally discussed under Rishi Sunak’s Conservative administration regarding tobacco and vaping have resurfaced — the most significant being the announcement of the UK’s first-ever tax on e-liquids, unveiled during Labour’s Budget statement on 30 October 2024. The price increase is set to take effect from October 2026.
This news followed shortly after confirmation that, from 1 June 2025, it will be illegal to buy or sell disposable vape kits in any form. This gives the vape industry — retailers and consumers alike — from 24 October 2024 until 1 June 2025 to purchase or sell any remaining disposable stock.
Below, we explore the details of this new taxation and its potential impact on vapers across the UK.
Why Is the UK Introducing a Vape Tax?
Rachel Reeves: “We want to discourage non-smokers and young people from taking up vaping.”
The UK’s vape tax has been closely linked to ongoing debates surrounding youth vaping and disposable e-cigarette use. The idea was first proposed as part of the Tobacco and Vapes Bill drafted by the previous Conservative government.
The main rationale is that, alongside banning disposable vapes — the easiest and most accessible products for young people — imposing a duty on vape liquids will make refilling devices more expensive, thus discouraging under-18s and non-smokers from starting.
The earlier Conservative proposal was more detailed, suggesting:
“The rates will be £1.00 per 10ml for nicotine-free liquids, £2.00 per 10ml for liquids containing 0.1–10.9mg of nicotine per ml, and £3.00 per 10ml for liquids containing 11mg or more per ml.”
By contrast, Labour’s current proposal is simpler, setting a flat rate of £2.20 per 10ml of e-liquid sold.
A UK-wide consultation on both the disposable vape ban and the proposed tax took place between 23 February and 8 March 2024. The proposals were challenged by several vaping advocates and industry representatives who argued that a blanket ban could undermine progress towards the Government’s own smoke-free goals — potentially pushing vapers back to cigarettes and fuelling an illicit vape trade. Many also cited the 2023 Khan Review, which promoted vaping as a key tool in tobacco harm reduction and recommended taxation be applied only to tobacco to fund Stop Smoking Services.
Despite these objections, the proposals were supported by 77% of consultation respondents, leading to both the ban and the excise duty being confirmed within the Tobacco and Vapes Bill by March 2024.
When the snap general election was held in July, all vaping-related plans were temporarily shelved as Parliament dissolved. However, during the October 2024 Budget, Chancellor Rachel Reeves confirmed that the £2.20 per 10ml vape duty would indeed be implemented from October 2026.
The Government’s Key Objectives
1. Making Vaping Products Less Affordable for Under-18s
Disposable vapes have been at the centre of what many describe as a “youth vaping crisis” in the UK. Reports of underage users obtaining brightly coloured, sweet-flavoured vapes — often perceived as trendy — led to widespread public concern and pressure on policymakers to act.
The new tax aims to reduce affordability for under-18s and deter those who have never smoked or vaped from starting.
2. Ensuring Vaping Remains Cheaper Than Smoking
Although Labour’s new duty will increase vape prices overall, the Government has also announced higher taxes on traditional tobacco products. According to The Daily Mail:
“Smokers can expect to pay 54p more for a packet of 20 cigarettes, £2.32 more for 30g of rolling tobacco, 27p more per 10g of cigars, 35p extra for 30g of pipe tobacco, and an additional 13p for a 6g pack of heated tobacco.”
This approach is intended to maintain vaping as a relatively less expensive — and therefore more appealing — alternative to smoking.
When Will the UK Vape Tax Take Effect?
According to the latest information, the vape duty will come into force on 1 October 2026. This gives both consumers and retailers time to prepare. While the impact on household budgets and business margins will vary, it is likely to be felt across the industry.
It remains unclear whether Labour will later adopt a tiered structure based on nicotine content, as previously proposed by the Conservatives. For now, all UK vaping brands will need to consider how to balance rising costs with customer affordability.
Which Products Will Be Affected?
The new excise duty is expected to apply solely to e-liquids. There has been no mention of additional taxes on vape kits, pods, or coils. As such, products like Ziggicig Classic will fall within the scope of the £2.20 per 10ml tax.
Brands importing 10ml vape liquids from abroad — such as Elf Bar, Lost Mary, and SKE Crystal — may face higher price pressures due to importation and warehousing costs, potentially making their products significantly more expensive. UK-made brands like Ziggicig, on the other hand, have greater flexibility to absorb costs, avoiding additional import duties.
How Much Will E-Liquid Cost After the Vape Tax?
While exact figures will depend on brand pricing strategies, early estimates suggest the following:
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Value-focused brands may see modest price increases.
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Premium or imported brands, such as Elf Bar or Lost Mary (currently around £4.99 per 10ml), could rise to approximately £7.19 per bottle.
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Larger “shortfill” e-liquids will face the steepest price hikes, as the tax is volume-based.
Industry Reactions
Unsurprisingly, the announcement has drawn mixed responses.
Asli Ertonguc, Head of BAT UK & Western Europe, said:
“We welcome the introduction of a low excise on e-liquids that improves oversight and enforcement of the e-cigarette supply chain. The flat rate levy simplifies administration and excise collection. However, we urge the Government to implement the tax in 2025 rather than 2026 to address the UK’s already prolific illicit market.”
Greig Fowler, Director of VPZ, countered:
“Vaping remains the most effective tool for quitting smoking and continues to transform lives across the UK. Increasing taxes will penalise the most vulnerable at a time when many are trying to make positive health choices. Raising tobacco duty while also taxing vaping is fundamentally flawed and risks pushing people back to cigarettes. It could also fuel the black market and jeopardise progress towards the 2030 Smoke-Free target.”
What Can Vapers Do to Prepare?
For now, there is no need for immediate action or panic buying. With implementation over a year away, nothing will change in the short term.
Nevertheless, vapers should remain informed about potential price adjustments. Signing up for newsletters — such as those from Ziggicig — is a simple way to stay up to date with the latest developments and future pricing information.