This tax information and impact note provides details of the Vaping Duty Stamps scheme which starts on 1 October 2026.

Who is likely to be affected

UK manufacturers of vaping products, importers of vaping products, retailers and wholesalers selling vaping products, packagers and distributors, stakeholders in the nicotine supply chain and consumers who buy or use vaping products.

General description of the measure

The government announced the introduction of a new Vaping Products Duty (VPD) at Autumn Budget 2024, to be implemented from 1 October 2026. To support the effective implementation and enforcement ofVPD, a Vaping Duty Stamps (VDS) scheme will also be brought into operation from 1 October 2026.

VDSrequires all vaping products manufactured or imported into the UK to have a duty stamp affixed to them. Duty stamps will only be issued to approved individuals, manufacturers and importers. From 1 April 2026, businesses must apply for approval from HMRC to affix duty stamps from 1 October 2026.

A transitional duty stamp will be made available to support businesses through the interim period beforeVDSare introduced. Further information will be made available in 2026.

The measure includes provision for enforcement including forfeiture of goods, new civil penalties and criminal offences to provide a range of options to officers dealing with wrongdoing under theVDSscheme. Where there has been criminal dealing in stamps, a court may make an order banning the premises from being used as a vape shop. This is to prevent organised crime groups from utilising the same premises with different personnel or a new company.

The measure gives HMRC new information sharing powers to share information with other public authorities with enforcement responsibilities relating to vaping products.

Policy objective

The government is committed to reducing the affordability and appeal of vaping products, particularly among young people and non-smokers, while maintaining the financial incentive for smokers to switch to less harmful alternatives.

VDSenables enforcement bodies and industry to quickly identify products that are non-duty paid and will enable retailers and consumers to identify illicit products.VDSwill help combatVPDnon-compliance, by requiring all vaping products manufactured or imported into the UK to have a duty stamp affixed to final retail packaging.

Requiring an approval from HMRC to purchaseVDSand limiting the supply of duty stamps will increase oversight of the vaping market, reducing the risk of evasion ofVPDand deter the sale of illicit vaping products.

This measure forms part of a broader strategy to regulate the vaping industry and protect public health, while ensuring fair competition and effective tax collection.

Background to the measure

At Spring Budget 2024, the introduction of a new excise duty on vaping products was announced, and a consultation was held on the design and structure of the duty. This was then confirmed at Autumn Budget 2024.

A consultation was launched to gather views on early proposals for a Vaping Duty Stamps scheme. This closed in December 2024. In May 2025, the government responded to this consultation confirming the introduction of the scheme.

Primary legislation is included in Finance Bill 2025-26. Secondary legislation is anticipated to be laid in March 2026 to set our further details.

Operative date

TheVDSscheme will be open for approvals from 1 April 2026. It will be compulsory for stamps to be affixed from 1 October 2026, following the grant of Royal Assent to Finance Bill 2025-26.

Current law

There is currently no excise duty levied on vaping products. TheVDSscheme will work alongside a new excise duty,VPD.