What The UK Vape Tax Means For You

In a move that will undoubtedly alter the landscape of vaping in the United Kingdom, a new tax on vaping products has been introduced. This change is particularly significant for those who use e-cigarettes as an alternative to smoking tobacco. 

Here's what you need to know about the new vape tax and how it will affect your vaping experience.

At the heart of this change is a tax that targets e-liquids based on their nicotine strength. For every 10ml of e-liquid that contains more than 11mg of nicotine, a hefty tax of £3 will be imposed. This means if you favour stronger e-liquids or use 18mg or 20mg nicotine shots, you'll be digging deeper into your pockets.

Let's not overlook lower-nicotine solutions. Even if you're using e-liquids containing less than 11mg of nicotine, a new tax of £2 per 10ml will still be applicable. This essentially means that low mg users on powerful devices will be affected most as 1.5mg & 3mg (popular choices) will be taxed the same per ml as 10.9mg liquids.

Even if you do not use nicotine at all, zero nicotine liquid (0mg) will be taxed at a rate of £1 per 10ml despite having none of the chemical present. It should also be noted that the duty is also applied to all products before VAT, increasing the tax burden by an additional 20%.

It’s not just consumers who are being targeted by this tax - when the legislation comes into effect this will force e-liquid manufacturers to operate from bonded warehouses where goods such as alcohol, tobacco and now vaping products can be stored securely. 

As you can imagine, this could translate into increased costs for manufacturers - between complex logistics and security costs, many small businesses will take a hit. This will reduce choice for the consumer and concentrate the market into the hands of large companies.

For vape shops in particular, the cost of holding inventory will surge. The initial investment needed to buy stock for their shelves could strain small businesses and will likely lead to decreased choice and increased prices for the end consumer.

Another point of considerable worry is security. With the new tax in place, e-liquid products will become significantly more valuable. This surge in value could unintentionally encourage illegal activities - the possibility of black market trade needs to be considered, as well as a rise in smuggling and illegal vape dealers.

Enforcing the tax places authorities at the helm of rigorously monitoring and curbing such illegal activities, but whether the systems in place will be sufficient to clamp down on these activities remains to be seen.

The question that remains to be answered is whether the authorities are up to the task of rigorously monitoring the industry and stamping out illegal activities.

For vapers, this means wrestling with higher costs and possibly contending with a market that could become flooded with unregulated products. The health implications of such products are a serious concern, as they are often not subject to the rigorous safety testing that legal products undergo.

In conclusion, the new vape tax in the UK is set to drastically alter the vaping industry and community. With higher costs, increased regulatory requirements, and the looming shadow of the black market, both the business side and consumers are poised to face challenges.

What can I do?

The tax won’t come into effect until October 2026, so there’s plenty of time for you to take action and keep your finger on the pulse of the conversation.

As the market landscape continues to evolve, staying informed and proactive is key to making your voice heard. Whether it's through active participation in community forums, supporting businesses that align with your values, or simply staying educated on new consumer trends and legislation, every action contributes to shaping a market that reflects the collective will and needs.

For those who wish to delve deeper, the DarkStar blog is dedicated to providing ongoing content that empowers you with knowledge and actionable insight. From in-depth analyses of the vaping market changes to updates on legislation, we are committed to keeping you informed.

We encourage you to join the conversation by leaving comments, sharing our posts, and suggesting topics that you want us to explore. Together, we can foster a community that is both aware and influential. 

Stay tuned to the DarkStar blog for regular updates, and let’s navigate the ever-shifting currents of the market together with both eyes open to the opportunities and challenges ahead.