UK E-Cigarette Tax Expected to Generate £565 Million by 2030

The UK will introduce a new tax on e-cigarette products (VPD) starting October 1, applicable to all e-liquid, including nicotine-free products. This move is expected to significantly boost government finances, with e-cigarette tax revenue projected to rise from £135 million in the 2026/27 fiscal year to £565 million by the 2030/31 fiscal year. Under the new regulations, travelers aged 17 and over entering Great Britain can carry up to 50 milliliters of e-liquid for personal use tax-free. Anyone carrying more than 50 milliliters must declare it and pay tax on the entire amount, not just the excess. Due to Northern Ireland's access to the EU goods market, different arrangements will apply. Travelers arriving directly from EU countries can continue to carry an unlimited amount of personal e-liquid without tax, while those arriving from non-EU countries must still adhere to the current personal goods duty-free limits. The new tariffs and traveler limits are expected to impact duty-free retailers serving passengers traveling to the UK, potentially leading to reduced purchase volumes and prompting adjustments to their product offerings. HM Revenue and Customs (HMRC) has urged retailers and stakeholders to provide clear guidance for travelers to minimize border violations.