Vaping products are already subject to 20% VAT but, unlike tobacco, they do not attract a separate additional tax.
As part of the Autumn Budget, Chancellor Rachel Reeves announced that a vaping products duty will start on 1 October 2026.
It will be charged at a flat rate of £2.20 per 10ml vaping liquid.
At the same time, tobacco duty will be increased to preserve the financial incentive to switch to vaping.